Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 12, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | VRTS | ||
Entity Registrant Name | VIRTUS INVESTMENT PARTNERS, INC. | ||
Entity Central Index Key | 883237 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 8,977,784 | ||
Entity Public Float | $1,535,144,421 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ||
Cash and cash equivalents | $202,847 | $271,014 |
Cash of consolidated sponsored investment products | 457 | 531 |
Cash pledged or on deposit of consolidated sponsored investment products | 8,230 | |
Investments | 63,448 | 37,258 |
Investments of consolidated sponsored investment products | 236,652 | 139,054 |
Accounts receivable, net | 49,721 | 50,166 |
Furniture, equipment, and leasehold improvements, net | 7,193 | 7,219 |
Intangible assets, net | 41,783 | 44,633 |
Goodwill | 5,260 | 5,260 |
Deferred taxes, net | 60,162 | 64,500 |
Other assets | 16,060 | 15,724 |
Other assets of consolidated sponsored investment products | 6,960 | 9,595 |
Total assets | 698,773 | 644,954 |
Liabilities: | ||
Accrued compensation and benefits | 54,815 | 53,140 |
Accounts payable and accrued liabilities | 31,627 | 29,912 |
Dividends payable | 4,270 | |
Other liabilities | 9,082 | 18,413 |
Liabilities of consolidated sponsored investment products | 12,556 | 8,435 |
Total liabilities | 112,350 | 109,900 |
Commitments and Contingencies (Note 9) | ||
Redeemable noncontrolling interests | 23,071 | 42,186 |
Equity attributable to stockholders: | ||
Common stock, $0.01 par value, 1,000,000,000 shares authorized; 9,551,274 shares issued and 8,975,833 shares outstanding at December 31, 2014 and 9,455,521 shares issued and 9,105,521 shares outstanding at December 31, 2013 | 96 | 95 |
Additional paid-in capital | 1,148,908 | 1,135,644 |
Accumulated deficit | -507,521 | -605,221 |
Accumulated other comprehensive loss | -242 | -150 |
Treasury stock, at cost, 575,441 and 350,000 shares at December 31, 2014 and December 31, 2013, respectively | -77,699 | -37,438 |
Total equity attributable to stockholders | 563,542 | 492,930 |
Noncontrolling interests | -190 | -62 |
Total equity | 563,352 | 492,868 |
Total liabilities and equity | $698,773 | $644,954 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 9,551,274 | 9,455,521 |
Common stock, shares outstanding | 8,975,833 | 9,105,521 |
Treasury stock, shares | 575,441 | 350,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Investment management fees | $300,663 | $260,557 | $187,875 |
Distribution and service fees | 91,950 | 78,965 | 56,866 |
Administration and transfer agent fees | 56,016 | 48,185 | 33,779 |
Other income and fees | 1,969 | 1,508 | 1,566 |
Total revenues | 450,598 | 389,215 | 280,086 |
Operating Expenses | |||
Employment expenses | 139,809 | 131,768 | 105,571 |
Distribution and administration expenses | 123,665 | 97,786 | 72,210 |
Other operating expenses | 46,531 | 38,321 | 34,017 |
Other operating expenses of consolidated sponsored investment products | 3,038 | 798 | 315 |
Restructuring and severance | 294 | 203 | 1,597 |
Depreciation and other amortization | 2,763 | 2,422 | 1,810 |
Amortization expense | 3,778 | 4,413 | 4,121 |
Total operating expenses | 319,878 | 275,711 | 219,641 |
Operating Income | 130,720 | 113,504 | 60,445 |
Other Income (Expense) | |||
Realized and unrealized gain on investments, net | 914 | 2,350 | 1,891 |
Realized and unrealized (loss) gain on investments of consolidated sponsored investment products, net | -4,648 | 3,515 | 2,072 |
Other income (expense), net | 891 | 74 | -38 |
Total other (expense) income, net | -2,843 | 5,939 | 3,925 |
Interest Income (Expense) | |||
Interest expense | -537 | -782 | -854 |
Interest and dividend income | 1,706 | 664 | 710 |
Interest and dividend income of investments of consolidated sponsored investment products | 7,268 | 2,583 | 577 |
Total interest income, net | 8,437 | 2,465 | 433 |
Income Before Income Taxes | 136,314 | 121,908 | 64,803 |
Income tax expense | 39,349 | 44,778 | 27,030 |
Net Income | 96,965 | 77,130 | 37,773 |
Noncontrolling interests | 735 | -1,940 | -101 |
Allocation of earnings to preferred stockholders | 0 | -64 | |
Net Income Attributable to Common Stockholders | $97,700 | $75,190 | $37,608 |
Earnings per share-Basic | $10.75 | $9.18 | $4.87 |
Earnings per share-Diluted | $10.51 | $8.92 | $4.66 |
Cash dividends declared per share | $1.35 | ||
Weighted Average Shares Outstanding-Basic (in thousands) | 9,091 | 8,188 | 7,727 |
Weighted Average Shares Outstanding-Diluted (in thousands) | 9,292 | 8,433 | 8,073 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $96,965 | $77,130 | $37,773 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment, net of tax of $132 and ($50) for the years ended December 31, 2014 and 2013 | -216 | 81 | |
Unrealized gain (loss) on available-for-sale securities, net of tax of ($76), $223, and $81 for the years ended December 31, 2014, 2013 and 2012, respectively | 124 | 56 | -273 |
Other comprehensive (loss) income | -92 | 137 | -273 |
Comprehensive income | 96,873 | 77,267 | 37,500 |
Comprehensive income attributable to noncontrolling interests | 735 | -1,940 | -101 |
Allocation of comprehensive income to preferred stockholders | 0 | -64 | |
Comprehensive income attributable to common stockholders | $97,608 | $75,327 | $37,335 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency translation adjustment, tax | $132 | ($50) | |
Unrealized gain (loss) on available-for-sale securities, tax | ($76) | $223 | $81 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Treasury Stock [Member] | Total Attributed To Shareholders [Member] | Non-controlling Interest [Member] | Redeemable Non-controlling Interest [Member] |
Beginning Balance at Dec. 31, 2011 | $183,155,000 | $63,000 | $909,983,000 | ($718,083,000) | ($14,000) | ($8,794,000) | $183,155,000 | ||
Balance, shares at Dec. 31, 2011 | 6,188,295 | 155,000 | |||||||
Net income (loss) | 37,669,000 | 37,672,000 | 37,672,000 | -3,000 | 104,000 | ||||
Net unrealized gain (loss) on securities available-for-sale | -273,000 | -273,000 | -273,000 | ||||||
Preferred stock conversion | 35,217,000 | 14,000 | 35,203,000 | 35,217,000 | |||||
Preferred stock conversion, shares | 1,349,300 | ||||||||
Activity of noncontrolling interests, net | 3,059,000 | ||||||||
Repurchase of common shares | -8,940,000 | -8,940,000 | -8,940,000 | ||||||
Repurchase of common shares, shares | -90,000 | 90,000 | |||||||
Issuance of common stock related to employee stock transactions | 3,188,000 | 4,000 | 3,184,000 | 3,188,000 | |||||
Issuance of common stock related to employee stock transactions, shares | 379,079 | ||||||||
Taxes paid on stock-based compensation | -11,951,000 | -11,951,000 | -11,951,000 | ||||||
Stock-based compensation | 6,406,000 | 6,406,000 | 6,406,000 | ||||||
Ending Balance at Dec. 31, 2012 | 244,471,000 | 81,000 | 942,825,000 | -680,411,000 | -287,000 | -17,734,000 | 244,474,000 | -3,000 | 3,163,000 |
Balance, shares at Dec. 31, 2012 | 7,826,674 | 245,000 | |||||||
Net income (loss) | 75,131,000 | 75,190,000 | 75,190,000 | -59,000 | 1,999,000 | ||||
Net unrealized gain (loss) on securities available-for-sale | 56,000 | 56,000 | 56,000 | ||||||
Foreign currency translation adjustment | 81,000 | 81,000 | 81,000 | ||||||
Activity of noncontrolling interests, net | 37,024,000 | ||||||||
Issuance of common stock, net | 191,578,000 | 13,000 | 191,565,000 | 191,578,000 | |||||
Cash dividends declared ($1.35 per common share) | 0 | ||||||||
Issuance of common stock, net, shares | 1,298,386 | ||||||||
Repurchase of common shares | -19,704,000 | -19,704,000 | -19,704,000 | ||||||
Repurchase of common shares, shares | 105,000 | -105,000 | 105,000 | ||||||
Issuance of common stock related to employee stock transactions | 633,000 | 1,000 | 632,000 | 633,000 | |||||
Issuance of common stock related to employee stock transactions, shares | 85,461 | ||||||||
Taxes paid on stock-based compensation | -7,513,000 | -7,513,000 | -7,513,000 | ||||||
Stock-based compensation | 7,657,000 | 7,657,000 | 7,657,000 | ||||||
Excess tax benefits from stock-based compensation | 478,000 | 478,000 | 478,000 | ||||||
Ending Balance at Dec. 31, 2013 | 492,868,000 | 95,000 | 1,135,644,000 | -605,221,000 | -150,000 | -37,438,000 | 492,930,000 | -62,000 | 42,186,000 |
Balance, shares at Dec. 31, 2013 | 9,105,521 | 9,105,521 | 350,000 | ||||||
Net income (loss) | 97,572,000 | 0 | 0 | 97,700,000 | 0 | 0 | 97,700,000 | -128,000 | -607,000 |
Net unrealized gain (loss) on securities available-for-sale | 124,000 | 0 | 0 | 0 | 124,000 | 0 | 124,000 | 0 | 0 |
Foreign currency translation adjustment | -216,000 | 0 | 0 | 0 | -216,000 | 0 | -216,000 | 0 | 0 |
Activity of noncontrolling interests, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -18,508,000 |
Cash dividends declared ($1.35 per common share) | -12,451,000 | 0 | -12,451,000 | 0 | 0 | 0 | -12,451,000 | 0 | 0 |
Repurchase of common shares | -40,261,000 | 0 | 0 | 0 | 0 | -40,261,000 | -40,261,000 | 0 | 0 |
Repurchase of common shares, shares | 225,441 | -225,441 | 225,441 | ||||||
Issuance of common stock related to employee stock transactions | 1,417,000 | 1,000 | 1,416,000 | 0 | 0 | 0 | 1,417,000 | 0 | 0 |
Issuance of common stock related to employee stock transactions, shares | 95,753 | ||||||||
Taxes paid on stock-based compensation | -9,512,000 | 0 | -9,512,000 | 0 | 0 | 0 | -9,512,000 | 0 | |
Stock-based compensation | 9,006,000 | 0 | 9,006,000 | 0 | 0 | 0 | 9,006,000 | 0 | 0 |
Excess tax benefits from stock-based compensation | 24,805,000 | 0 | 24,805,000 | 0 | 0 | 0 | 24,805,000 | 0 | 0 |
Ending Balance at Dec. 31, 2014 | $563,352,000 | $96,000 | $1,148,908,000 | ($507,521,000) | ($242,000) | ($77,699,000) | $563,542,000 | ($190,000) | $23,071,000 |
Balance, shares at Dec. 31, 2014 | 8,975,833 | 8,975,833 | 575,441 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared per share | $0.45 | $0.45 | $0.45 | $1.35 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities: | |||
Net Income | $96,965 | $77,130 | $37,773 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Depreciation expense, intangible asset and other amortization | 6,759 | 7,046 | 6,198 |
Stock-based compensation | 9,778 | 7,960 | 6,927 |
Excess tax benefit from stock-based compensation | -24,805 | -478 | -89 |
Amortization of deferred commissions | 17,907 | 14,453 | 10,715 |
Payments of deferred commissions | -13,796 | -18,912 | -10,868 |
Equity in earnings of equity method investments | -488 | -161 | |
Realized and unrealized gains on trading securities | -914 | -2,350 | -1,891 |
Realized and unrealized losses (gains) on investments of consolidated sponsored investment products | 4,671 | -3,515 | -2,072 |
Sales (purchases) of trading securities, net | 26,742 | -2,701 | 2,025 |
Purchases of investments by consolidated sponsored investment products, net | -195,683 | -100,499 | -41,155 |
Sales of securities sold short by consolidated sponsored investment products, net | 8,071 | ||
Deferred taxes, net | 4,394 | 32,596 | 26,689 |
Changes in operating assets and liabilities: | |||
Cash pledged or on deposit of consolidated sponsored investment products | -10,785 | ||
Accounts receivable, net and other assets | -4,157 | -13,416 | -10,047 |
Other assets of consolidated sponsored investment products | 1,082 | -6,043 | -683 |
Accrued compensation and benefits, accounts payable, accrued liabilities and other liabilities | 17,754 | 37,575 | 15,919 |
Liabilities of consolidated sponsored investment products | -2,366 | 152 | 377 |
Net cash (used in) provided by operating activities | -58,871 | 28,837 | 39,818 |
Cash Flows from Investing Activities: | |||
Capital expenditures | -2,432 | -2,009 | -3,782 |
Change in cash and cash equivalents of consolidated sponsored investment products due to deconsolidation | -436 | -662 | |
Asset acquisitions and purchases of other investments | -5,000 | -3,364 | -1,006 |
Purchase of available-for-sale securities | -313 | -196 | -379 |
Net cash used in investing activities | -8,181 | -6,231 | -5,167 |
Cash Flows from Financing Activities: | |||
Contingent consideration paid for acquired investment management contracts | 0 | -630 | -665 |
Borrowings of proceeds from short sales by consolidated sponsored investment products | 2,555 | ||
Repurchase of common shares | -40,261 | -19,704 | -8,940 |
Dividends paid | -8,182 | ||
Proceeds from exercise of stock options | 753 | 570 | 2,636 |
Taxes paid related to net share settlement of restricted stock units | -9,512 | -7,513 | -11,951 |
Proceeds from issuance of common stock, net of issuance costs | 0 | 191,771 | |
Excess tax benefits from stock-based compensation | 24,805 | 478 | 89 |
Payment of debt and deferred financing costs | 0 | -15,026 | -700 |
Contributions of noncontrolling interests, net | 28,653 | 35,547 | 3,059 |
Net cash (used in) provided by financing activities | -1,189 | 185,493 | -16,472 |
Net (decrease) increase in cash and cash equivalents | -68,241 | 208,099 | 18,179 |
Cash and cash equivalents, beginning of year | 271,545 | 63,446 | 45,267 |
Cash and Cash Equivalents, end of year | 203,304 | 271,545 | 63,446 |
Supplemental Cash Flow Information: | |||
Interest paid | 266 | 393 | 415 |
Income taxes paid, net | 23,274 | 1,697 | 74 |
Non-Cash Investing Activities: | |||
Purchase of investment management contracts | 0 | 435 | |
Non-cash activity related to rabbi trust | -843 | -1,250 | -144 |
Non-Cash Financing Activities: | |||
Dividends payable | 4,270 | ||
(Decrease) increase to noncontrolling interest due to (deconsolidation) consolidation of sponsored investment products, net | -47,165 | 1,477 | |
Preferred stock conversion | $0 | $35,217 |
Organization_and_Business
Organization and Business | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization and Business | 1. Organization and Business |
Virtus Investment Partners, Inc. (the “Company,” “we,” “us,” “our” or “Virtus”), a Delaware corporation, operates in the investment management industry through its subsidiaries. | |
The Company provides investment management and related services to individuals and institutions throughout the United States of America. The Company’s retail investment management services are provided to individuals through products consisting of open-end mutual funds, closed-end funds, variable insurance funds and separately managed accounts. Separately managed accounts are offered through intermediary programs that are sponsored and distributed by unaffiliated broker-dealers and individual direct managed account investment services that are provided by the Company. Institutional investment management services are provided primarily to corporations, multi-employer retirement funds, employee retirement systems, foundations, endowments and subadvisory accounts. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies |
The Company’s significant accounting policies, which have been consistently applied, are as follows: | |
Principles of Consolidation and Basis of Presentation | |
The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company, its subsidiaries and sponsored investment products in which it has a controlling financial interest. The Company is generally considered to have a controlling financial interest when it owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the subsidiary. See Note 19 for additional information related to the consolidation of sponsored investment products. Material intercompany accounts and transactions have been eliminated. | |
The Company also evaluates any variable interest entities (“VIEs”) in which the Company has a variable interest for consolidation. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) where as a group, the holders of the equity investment at risk do not possess: (i) the power to direct the activities that most significantly impact the entity’s performance; (ii) the obligation to absorb expected losses or the right to receive expected residual returns of the entity; or (iii) proportionate voting and economic interests and where substantially all of the entity’s activities either involve or are conducted on behalf of the equity holders. If any entity has any of these characteristics, it is considered a VIE and required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. | |
Collateralized Debt Obligations | |
As of December 31, 2014 and 2013, certain of the Company’s affiliates served as the collateral manager for collateralized loan and collateralized bond obligations (collectively, “CDOs”). The CDOs’ assets and liabilities reside in bankruptcy remote, special purpose entities in which the Company has no ownership in, nor holds any notes issued by, the CDOs and provides neither recourse nor guarantees. Accordingly, the Company’s financial exposure to these CDOs is limited only to the collateral investment management fees it earns, which totaled $1.6 million, $1.7 million and $2.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
The CDOs are considered VIEs, and as a result, the Company is required to consider the nature of its involvement in these VIEs in determining if it should consolidate the entity. In assessing consolidation of the CDOs, the Company assessed whether the collateral management fees represented a variable interest and the Company was the primary beneficiary of the VIE. The primary beneficiary assessment includes an analysis of the rights of the Company in its capacity as collateral manager and an analysis of whether the Company could receive significant benefits or absorb significant losses from the CDO. | |
The Company determined that its investment management fees received as collateral manager for certain CDOs did not represent a variable interest due to the anticipated fees being fixed in nature, senior to interest and principal payments, and any subordinated fee elements were insignificant relative to the total fee and total anticipated economic performance of the CDOs. | |
Noncontrolling Interest | |
Noncontrolling interests represent the profit or loss attributed to third party investors in consolidated sponsored investment products and other affiliates. Movements in amounts attributable to noncontrolling interests in consolidated entities on the Company’s Consolidated Statements of Operations offset the operating results, gains and losses and interest expense of the third party investors. Noncontrolling interests related to certain consolidated sponsored investment products are classified as redeemable noncontrolling interests because investors in these funds may request withdrawals at any time. | |
Use of Estimates | |
The preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management believes the estimates used in preparing the consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. | |
Segment Information | |
Accounting Standards Codification (“ASC”) 280, Segment Reporting, establishes disclosure requirements relating to operating segments in annual and interim financial statements. Business or operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company operates in one business segment, namely as an asset manager providing investment management and distribution services for individual and institutional clients. The Company’s Chief Executive Officer is the Company’s chief operating decision maker. Although the Company does make some disclosures regarding assets under management and other asset flows by product, the Company’s determination that it operates in one business segment is based on the fact that the same investment and operational resources support multiple products, they have the same or similar regulatory framework and that the Company’s chief operating decision maker reviews the Company’s financial performance at a consolidated level. Investment organizations within the Company are generally not aligned with specific product lines. Investment professionals manage both retail and institutional products. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash in banks and money market fund investments. | |
Investments | |
Marketable Securities | |
Marketable securities consist of investments in the Company’s sponsored mutual funds and other publicly traded securities which are carried at fair value in accordance with ASC 320, Investments—Debt and Equity Securities (“ASC 320”). Marketable securities are marked to market based on the respective publicly quoted net asset values of the funds or market prices of the equity securities or bonds. Marketable securities transactions are recorded on a trade date basis. Marketable securities include sponsored mutual funds, sponsored variable insurance funds and other equity securities classified as trading securities and sponsored closed-end funds classified as available-for-sale securities. Any unrealized appreciation or depreciation on available for sale securities, net of income taxes, is reported as a component of accumulated other comprehensive income in equity attributable to stockholders. | |
On a quarterly basis, the Company conducts a review to assess whether other-than-temporary impairment exists on its available-for-sale marketable securities. Other-than-temporary declines in value may exist if the fair value of a marketable security has been below the carrying value for an extended period of time. If an other-than-temporary decline in value is determined to exist, the unrealized investment loss, net of tax, is recognized in the Consolidated Statements of Operations in the period in which the other-than-temporary decline in value occurs, as well as an accompanying permanent adjustment to accumulated other comprehensive income. | |
Equity Method Investments | |
The Company’s investment in noncontrolled investees is accounted for under the equity method of accounting in accordance with ASC 323, Investments-Equity Method and Joint Ventures. Under the equity method of accounting, the Company’s share of the noncontrolled affiliate’s net income or loss is recorded in other income (expense), net in the accompanying Consolidated Statements of Operations. Distributions received reduce the Company’s investment balance. The investment is evaluated for impairment as events or changes indicate that the carrying amount exceeds its fair value. If the carrying amount of an investment does exceed its fair value and the decline in fair value is deemed to be other than temporary, an impairment charge will be recorded. | |
Non-qualified Retirement Plan Assets and Liabilities | |
The Company has a non-qualified retirement plan (the “Excess Incentive Plan”) that allows certain employees to voluntarily defer compensation. Under the Excess Incentive Plan, participants elect to defer a portion of their compensation which the Company then contributes into a trust. Each participant is responsible for designating investment options for assets they contribute and the ultimate distribution paid to each participant reflects any gains or losses on the assets realized while in the trust. The Company holds the Excess Incentive Plan assets in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. Assets held in trust are included in investments and are carried at fair value in accordance with ASC 320; the associated obligations to participants are included in other liabilities in the Company’s Consolidated Balance Sheets. Assets held in trust consist of mutual funds and are recorded at fair value, utilizing Level 1 valuation techniques. | |
Deferred Commissions | |
Deferred commissions, which are included in other assets, are commissions paid to broker-dealers on sales of mutual fund shares. Deferred commissions are recovered by the receipt of monthly asset-based distributor fees from the mutual funds or contingent deferred sales charges received upon redemption of shares within one to five years, depending on the fund share class. The deferred costs resulting from the sale of shares are amortized on a straight-line basis over a one to five-year period, depending on the fund share class, or until the underlying shares are redeemed. Deferred commissions are periodically assessed for impairment and additional amortization expense is recorded, as appropriate. | |
Furniture, Equipment and Leasehold Improvements, Net | |
Furniture, equipment and leasehold improvements are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of three to seven years for furniture and office equipment, and three to five years for computer equipment and software. Leasehold improvements are depreciated over the shorter of the remaining estimated lives of the related leases or useful lives of the improvements. Major renewals or betterments are capitalized, and recurring repairs and maintenance are expensed as incurred. Leasehold improvements that are funded upfront by a landlord and are constructed for the benefit of the Company are recorded at cost and depreciated on a straight-line basis over the original minimum term of the lease and a corresponding lease incentive liability in the same amount is also recorded and initially amortized over the same period. | |
Leases | |
The Company currently leases office space and equipment under various leasing arrangements. Leases are classified as either capital leases or operating leases, as appropriate. Most lease agreements are classified as operating leases and contain renewal options, rent escalation clauses or other inducements provided by the lessor. Rent expense under non-cancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. Build-out allowances and other such lease incentives are recorded as deferred credits, and are amortized on a straight-line basis as a reduction of rent expense beginning in the period they are deemed to be earned, which generally coincides with the effective date of the lease. | |
Intangible Assets and Goodwill | |
Definite-lived intangible assets are comprised of acquired investment advisory contracts. These assets are amortized on a straight-line basis over the estimated useful lives of such assets, which range from one to sixteen years. Definite-lived intangible assets are evaluated for impairment on an ongoing basis under GAAP whenever events or circumstances indicate that the carrying value of the definite-lived intangible asset may not be fully recoverable. The Company determines if impairment has occurred by comparing estimates of future undiscounted cash flows to the carrying value of assets. Assets are considered impaired, and impairment is recorded, if the carrying value exceeds the expected future undiscounted cash flows. | |
Goodwill represents the excess of the purchase price of acquisitions and mergers over the identified net assets and liabilities acquired. In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill is not being amortized. A single reporting unit has been identified for the purpose of assessing potential future impairments of goodwill. An impairment analysis of goodwill is performed annually or more frequently, if warranted by events or changes in circumstances affecting the Company’s business. The Company follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2011-08, Testing Goodwill for Impairment, which states that an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The Company’s 2014 and 2013 annual goodwill impairment analysis did not result in any impairment charges. | |
Indefinite-lived intangible assets are comprised of closed-end fund investment advisory contracts. These assets are tested for impairment annually and when events or changes in circumstances indicate the assets might be impaired. The Company follows ASU No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which provides entities with an option to perform a qualitative assessment of indefinite-lived intangible assets other than goodwill for impairment to determine if additional impairment testing is necessary. The Company’s 2014 and 2013 annual indefinite-lived intangible assets impairment analyses did not result in any impairment charges. | |
Treasury Stock | |
Treasury stock is accounted for under the cost method and is included as a deduction from equity in the Stockholders’ Equity section of the Consolidated Balance Sheets. Upon any subsequent resale, the treasury stock account is reduced by the cost of such stock. | |
Revenue Recognition | |
Investment management fees, distribution and service fees and administration and transfer agent fees are recorded as revenues during the period in which services are performed. Investment management fees are earned based upon a percentage of assets under management and are paid pursuant to the terms of the respective investment management contracts, which generally require monthly or quarterly payment. | |
The Company accounts for investment management fees in accordance with ASC 605, Revenue Recognition, and has recorded its management fees net of fees paid to unaffiliated advisers. The Company considers the nature of its contractual arrangements in determining whether to recognize revenue based on the gross amount billed or net amount retained. The Company has evaluated the factors in ASC 605-45 in determining whether to record revenue on a gross or net basis with significant weight placed on: (i) if the Company is the primary obligor in the arrangement; and (ii) if the Company has latitude in establishing price. Amounts paid to unaffiliated advisers for the years ended December 31, 2014, 2013 and 2012 were $124.4 million, $96.1 million and $53.7 million, respectively. | |
Distribution and service fees are earned based on a percentage of assets under management and are paid monthly pursuant to the terms of the respective distribution and service fee contracts. Underwriter fees are sales-based charges on sales of certain class A-share mutual funds. | |
Administration and transfer agent fees consist of fund administration fees, transfer agent fees and fiduciary fees. Fund administration and transfer agent fees are earned based on the average daily assets in the funds. | |
Other income and fees consist primarily of redemption income on the early redemption of certain share classes of mutual funds and distribution of nonaffiliated products. | |
Advertising and Promotion | |
Advertising and promotional costs include print advertising and promotional items and are expensed as incurred. These costs are classified in other operating expense in the Consolidated Statements of Operations. | |
Stock-based Compensation | |
The Company accounts for stock-based compensation expense in accordance with ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for share-based awards based on the estimated fair value on the date of grant. | |
Restricted stock units (“RSUs”) are stock awards that entitle the holder to receive shares of the Company’s common stock as the award vests over time or when certain performance targets are achieved. The fair value of each RSU award is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Compensation expense for RSU awards is recognized ratably over the vesting period on a straight-line basis. | |
The fair value of each stock option award is estimated on the date of grant using the Black-Scholes stock option valuation model. The Black-Scholes stock option valuation model incorporates assumptions as to dividend yield, volatility, an appropriate risk-free interest rate and the expected life of the stock option. | |
Income Taxes | |
The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires recognition of the amount of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events that have been included in the Company’s financial statements or tax returns. Deferred tax liabilities and assets result from differences between the book value and tax basis of the Company’s assets, liabilities and carry-forwards, such as net operating losses or tax credits. | |
The Company’s methodology for determining the realizability of deferred tax assets includes consideration of taxable income in prior carryback year(s) if carryback is permitted under the tax law, as well as consideration of the reversal of deferred tax liabilities that are in the same period and jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The Company’s methodology also includes estimates of future taxable income from its operations, as well as the expiration dates and amounts of carry-forwards related to net operating losses and capital losses. These estimates are projected through the life of the related deferred tax assets based on assumptions that the Company believes to be reasonable and consistent with demonstrated operating results. Changes in future operating results not currently forecasted may have a significant impact on the realization of deferred tax assets. Valuation allowances are provided when it is determined that it is more likely than not that the benefit of deferred tax assets will not be realized. | |
Comprehensive Income | |
The Company reports all changes in comprehensive income in the Consolidated Statements of Changes in Stockholders’ Equity and the Consolidated Statements of Comprehensive Income. Comprehensive income includes net income (loss), foreign currency translation adjustments (net of tax) and unrealized gains and losses on investments classified as available-for-sale (net of tax). | |
Earnings per Share | |
Earnings per share (“EPS”) is calculated in accordance with ASC 260, Earnings per Share. Basic EPS excludes dilution for potential common stock issuances and is computed by dividing basic net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of RSUs and stock options using the treasury stock method. | |
Fair Value Measurements and Fair Value of Financial Instruments | |
The FASB defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels as follows: | |
Level 1—Quoted prices for identical instruments in active markets. Level 1 assets and liabilities may include debt securities and equity securities that are traded in an active exchange market. | |
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs may include observable market data such as closing market prices provided by independent pricing services after considering factors such as the yields or prices of comparable investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. In addition, pricing services may determine the fair value of equity securities traded principally in foreign markets when it has been determined that there has been a significant trend in the U.S. equity markets or in index futures trading. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. | |
Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets. | |
Recent Accounting Pronouncements | |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The company is currently evaluating the potential impact of this standard on its financial statements, as well as the available transition methods. | |
In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015, and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. As of December 31, 2014, the Company has not yet adopted ASU 2014-13 but does not expect this standard to have a material effect on its financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is prohibited. The Company is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. ASU 2013-11 became effective for the Company on January 1, 2014. The Company adopted this standard as of January 1, 2014. The adoption of this standard did not have a material impact on the Company’s financial results. | |
In June 2013, the FASB issued ASU No. 2013-08, Investment Companies: Amendments to the Scope, Measurement and Disclosure Requirements. The new standard clarifies the characteristics of an investment company and provides comprehensive guidance for assessing whether an entity is an investment company. The amendments apply to an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. The Company adopted this standard as of January 1, 2014. The adoption of this standard did not have a material impact on the Company’s financial results. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill and Other Intangible Assets | 3. Goodwill and Other Intangible Assets | ||||||||||||
Intangible assets, net are summarized as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
($ in thousands) | |||||||||||||
Definite-lived intangible assets, net: | |||||||||||||
Investment contracts | $ | 158,747 | $ | 157,882 | |||||||||
Accumulated amortization | (149,380 | ) | (145,665 | ) | |||||||||
Definite-lived intangible assets, net | 9,367 | 12,217 | |||||||||||
Indefinite-lived intangible assets | 32,416 | 32,416 | |||||||||||
Total intangible assets, net | $ | 41,783 | $ | 44,633 | |||||||||
Activity in goodwill and intangible assets, net is as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands) | |||||||||||||
Intangible assets, net | |||||||||||||
Balance, beginning of period | $ | 44,633 | $ | 48,711 | $ | 52,096 | |||||||
Acquisition | 1,075 | 356 | 560 | ||||||||||
Amortization expense | (3,925 | ) | (4,434 | ) | (3,945 | ) | |||||||
Balance, end of period | $ | 41,783 | $ | 44,633 | $ | 48,711 | |||||||
Goodwill | |||||||||||||
Balance, beginning of period | $ | 5,260 | $ | 5,260 | $ | 4,795 | |||||||
Acquisition | — | — | 465 | ||||||||||
Balance, end of period | $ | 5,260 | $ | 5,260 | $ | 5,260 | |||||||
Definite-lived intangible asset amortization for the next five years is estimated as follows: 2015—$3.3 million, 2016—$2.5 million, 2017—$0.8 million, 2018—$0.6 million, 2019—$0.5 million, and thereafter—$1.7 million. At December 31, 2014, the weighted average estimated remaining amortization period for definite-lived intangible assets is 4.8 years. |
Investments
Investments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments Schedule [Abstract] | |||||||||||||||||
Investments | 4. Investments | ||||||||||||||||
The Company’s investments, excluding the assets of consolidated sponsored investment products, discussed in Note 19, are as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Marketable securities | $ | 50,251 | $ | 28,968 | |||||||||||||
Equity method investments | 7,209 | 4,070 | |||||||||||||||
Nonqualified retirement plan assets | 5,063 | 4,220 | |||||||||||||||
Other investments | 925 | — | |||||||||||||||
Total investments | $ | 63,448 | $ | 37,258 | |||||||||||||
Marketable Securities | |||||||||||||||||
The Company’s marketable securities consist of both trading (including securities held by a broker-dealer affiliate) and available-for-sale securities. The composition of the Company’s marketable securities is summarized as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Loss | Gain | Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Trading: | |||||||||||||||||
Sponsored funds | $ | 39,079 | $ | (1,190 | ) | $ | 423 | $ | 38,312 | ||||||||
Equity securities | 8,421 | — | 319 | 8,740 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sponsored closed-end funds | 3,129 | (163 | ) | 233 | 3,199 | ||||||||||||
Total marketable securities | $ | 50,629 | $ | (1,353 | ) | $ | 975 | $ | 50,251 | ||||||||
December 31, 2013 | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Loss | Gain | Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Trading: | |||||||||||||||||
Sponsored funds | $ | 16,079 | $ | (704 | ) | $ | 2,529 | $ | 17,904 | ||||||||
Equity securities | 7,043 | — | 1,336 | 8,379 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sponsored closed-end funds | 2,815 | (145 | ) | 15 | 2,685 | ||||||||||||
Total marketable securities | $ | 25,937 | $ | (849 | ) | $ | 3,880 | $ | 28,968 | ||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company recognized a realized gain of $8.2 million, $1.0 million and $0.4 million, respectively, on trading securities. | |||||||||||||||||
Equity Method Investments | |||||||||||||||||
In 2014, the Company acquired an interest in a limited partnership for approximately $5.0 million which includes a future capital commitment for up to $6.7 million in the event that it is called by the partnership. | |||||||||||||||||
On April 9, 2013, the Company acquired a 24% noncontrolling Euro-denominated equity interest in Kleinwort Benson Investors International, Ltd. (“KBII”), a subsidiary of Kleinwort Benson Investors (Dublin) (“KBID”) for €2.6 million or $3.4 million. KBII is a U.S. registered investment adviser that provides specialized equity strategies. As of the date of acquisition, the Company allocated $2.5 million of this investment to goodwill, $0.6 million to definite-lived intangible assets that are being amortized over seven years and $0.3 million allocated to the remaining assets and liabilities of KBII. In conjunction with this investment, the Company entered into a put and call option with KBID. This investment is translated into U.S. dollars at current exchange rates as of the end of each accounting period. Net income or loss of the noncontrolled affiliate is translated at average exchange rates in effect during the accounting period. Net translation exchange gains and losses are excluded from income and recorded in accumulated other comprehensive income. | |||||||||||||||||
Nonqualified Retirement Plan Assets | |||||||||||||||||
The Excess Incentive Plan allows certain employees to voluntarily defer compensation. The Company holds the Excess Incentive Plan assets in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. Assets held in trust are included in investments and are carried at fair value in accordance with ASC 320; the associated obligations to participants are included in other liabilities in the Company’s Consolidated Balance Sheets. | |||||||||||||||||
Other Investments | |||||||||||||||||
Other investments represents interests in affiliate entities not accounted for under the equity method such as the cost method or fair value. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 5. Fair Value Measurements | ||||||||||||||||
The Company’s assets and liabilities measured at fair value, excluding the assets and liabilities of consolidated sponsored investment products discussed in Note 19, on a recurring basis as of December 31, 2014 and December 31, 2013 by fair value hierarchy level were as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 202,054 | $ | — | $ | — | $ | 202,054 | |||||||||
Marketable securities trading: | |||||||||||||||||
Sponsored funds | 38,312 | — | — | 38,312 | |||||||||||||
Equity securities | 8,740 | — | — | 8,740 | |||||||||||||
Marketable securities available for sale: | |||||||||||||||||
Sponsored closed-end funds | 3,199 | — | — | 3,199 | |||||||||||||
Other investments | |||||||||||||||||
Nonqualified retirement plan assets | 5,063 | — | — | 5,063 | |||||||||||||
Total assets measured at fair value | $ | 257,368 | $ | — | $ | — | $ | 257,368 | |||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 270,262 | $ | — | $ | — | $ | 270,262 | |||||||||
Marketable securities trading: | |||||||||||||||||
Sponsored funds | 17,904 | — | — | 17,904 | |||||||||||||
Equity securities | 8,379 | — | — | 8,379 | |||||||||||||
Marketable securities available for sale: | |||||||||||||||||
Sponsored closed-end funds | 2,685 | — | — | 2,685 | |||||||||||||
Other investments | |||||||||||||||||
Nonqualified retirement plan assets | 4,220 | — | — | 4,220 | |||||||||||||
Total assets measured at fair value | $ | 303,450 | $ | — | $ | — | $ | 303,450 | |||||||||
The following is a discussion of the valuation methodologies used for the Company’s assets measured at fair value. | |||||||||||||||||
Cash equivalents represent investments in money market funds. Cash investments in actively traded money market funds are valued using published net asset values and are classified as Level 1. | |||||||||||||||||
Sponsored funds represent investments in open-end mutual funds, variable insurance funds and closed-end funds for which the Company acts as the investment manager. The fair value of open-end mutual funds and variable insurance funds is determined based on their published net asset values and are categorized as Level 1. The fair value of closed-end funds is determined based on the official closing price of the exchange they are traded on and are categorized as Level 1. | |||||||||||||||||
Equity securities include securities traded on active markets and are valued at the official closing price (typically last sale or bid) on the exchange on which the securities are primarily traded and are categorized as Level 1. | |||||||||||||||||
Nonqualified retirement plan assets represent mutual funds within a nonqualified retirement plan whose fair value is determined based on their published net asset value and are categorized as Level 1. | |||||||||||||||||
Cash, accounts receivable, accounts payable and accrued liabilities equal or approximate fair value based on the short-term nature of these instruments. Marketable securities are reflected in the consolidated financial statements at fair value based upon publicly quoted market prices. | |||||||||||||||||
Transfers into and out of levels are reflected when significant inputs, including market inputs or performance attributes, used for the fair value measurement become observable or unobservable or when the Company determines it has the ability, or no longer has the ability, to redeem, in the near term, certain investments that the Company values using a net asset value, or if the book value of certain equity method investments no longer represents fair value. There were no transfers between Level 1 and Level 2 during the years ended December 31, 2014 and 2013. |
Furniture_Equipment_and_Leaseh
Furniture, Equipment and Leasehold Improvements, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Furniture, Equipment and Leasehold Improvements, Net | 6. Furniture, Equipment and Leasehold Improvements, Net | ||||||||
Furniture, equipment and leasehold improvements, net are summarized as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
($ in thousands) | |||||||||
Furniture and office equipment | $ | 4,762 | $ | 4,033 | |||||
Computer equipment and software | 6,148 | 5,663 | |||||||
Leasehold improvements | 8,454 | 7,240 | |||||||
19,364 | 16,936 | ||||||||
Accumulated depreciation and amortization | (12,171 | ) | (9,717 | ) | |||||
Furniture, equipment and leasehold improvements, net | $ | 7,193 | $ | 7,219 | |||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Income Taxes | 7. Income Taxes | ||||||||||||||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Current | |||||||||||||||||||||||||
Federal | $ | 31,787 | $ | 10,395 | $ | — | |||||||||||||||||||
State | 3,168 | 1,787 | 341 | ||||||||||||||||||||||
Total current tax expense | 34,955 | 12,182 | 341 | ||||||||||||||||||||||
Deferred | |||||||||||||||||||||||||
Federal | 3,200 | 29,933 | 19,707 | ||||||||||||||||||||||
State | 1,194 | 2,663 | 6,982 | ||||||||||||||||||||||
Total deferred tax expense (benefit) | 4,394 | 32,596 | 26,689 | ||||||||||||||||||||||
Total expense for income taxes | $ | 39,349 | $ | 44,778 | $ | 27,030 | |||||||||||||||||||
The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized in the Consolidated Statements of Operations for the years indicated: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Tax at statutory rate | $ | 47,922 | 35 | % | $ | 41,968 | 35 | % | $ | 22,645 | 35 | % | |||||||||||||
State taxes, net of federal benefit | 4,357 | 3 | 2,893 | 2 | 4,793 | 7 | |||||||||||||||||||
Uncertain tax positions | (30,961 | ) | (22 | ) | — | — | — | — | |||||||||||||||||
IRS audit resolution | 15,505 | 11 | — | — | — | — | |||||||||||||||||||
Change in valuation allowance | 2,165 | 2 | (264 | ) | — | (242 | ) | — | |||||||||||||||||
Other, net | 361 | — | 181 | — | (166 | ) | — | ||||||||||||||||||
Income tax expense | $ | 39,349 | 29 | % | $ | 44,778 | 37 | % | $ | 27,030 | 42 | % | |||||||||||||
The provision for income taxes reflects U.S. federal, state and local taxes at an estimated effective tax rate of 28.9%, 36.7% and 41.7% for the years ended December 31, 2014, 2013 and 2012, respectively. The Company’s effective tax rate for the year ended December 31, 2014 was impacted by a net tax benefit of approximately $15.5 million due to the settlement of the Internal Revenue Service (“IRS”) examination of its 2011 federal consolidated corporate income tax return. The net benefit is comprised of the recognition of tax benefits from uncertain tax positions of approximately $31.0 million and a reduction in the deferred tax assets of approximately $15.5 million which are related to a loss resulting from the past dissolution of a subsidiary. | |||||||||||||||||||||||||
Deferred taxes resulted from temporary differences between the amounts reported in the consolidated financial statements and the tax basis of assets and liabilities. The tax effects of temporary differences are as follows: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Intangible assets | $ | 36,340 | $ | 43,827 | |||||||||||||||||||||
Net operating losses | 21,547 | 23,705 | |||||||||||||||||||||||
Compensation accruals | 6,757 | 6,280 | |||||||||||||||||||||||
Investments | 8,717 | 5,111 | |||||||||||||||||||||||
Unrealized loss/(gain) | 2,362 | (2,357 | ) | ||||||||||||||||||||||
Other | 46 | 1,581 | |||||||||||||||||||||||
Gross deferred tax assets | 75,769 | 78,147 | |||||||||||||||||||||||
Valuation allowance | (2,397 | ) | (35 | ) | |||||||||||||||||||||
Gross deferred tax assets after valuation allowance | 73,372 | 78,112 | |||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Intangible assets | (12,718 | ) | (13,078 | ) | |||||||||||||||||||||
Other investments | (492 | ) | (534 | ) | |||||||||||||||||||||
Gross deferred tax liabilities | (13,210 | ) | (13,612 | ) | |||||||||||||||||||||
Deferred tax assets, net | $ | 60,162 | $ | 64,500 | |||||||||||||||||||||
At each reporting date, the Company evaluates the positive and negative evidence used to determine the likelihood of realization of all its deferred tax assets. The Company maintained a valuation allowance in the amount of $2.4 million, $0.0 million and $1.6 million at December 31, 2014, 2013 and 2012, respectively, relating to deferred tax assets on items of a capital nature as well as certain state deferred tax assets. | |||||||||||||||||||||||||
As of December 31, 2014, the Company had $41.0 million of net operating loss carry-forwards for federal income tax purposes. The related federal net operating loss carry-forwards are scheduled to begin to expire in the year 2029. As of December 31, 2014, the Company had state net operating loss carry-forwards, varying by subsidiary and jurisdiction, represented by a $7.2 million deferred tax asset. The state net operating loss carry-forwards are scheduled to begin to expire in 2016. | |||||||||||||||||||||||||
Internal Revenue Code Section 382 limits tax deductions for net operating losses, capital losses and net unrealized built-in losses after there is a substantial change in ownership in a corporation’s stock involving a 50 percentage point increase in ownership by 5% or larger stockholders. During the year ended December 31, 2009, due to changes in the Company’s stockholder base, the Company incurred an ownership change as defined in Section 382. At December 31, 2014, the Company has approximately $66.5 million in pre-change net operating loss carryovers and built-in losses that are reflected within the Company’s deferred tax assets noted above and are subject to an annual limitation of $4.2 million plus any cumulative unused Section 382 limitation from post-change tax years. | |||||||||||||||||||||||||
Activity in unrecognized tax benefits is as follows: | |||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Balance, beginning of year | $ | 32,602 | $ | 33,948 | $ | 34,139 | |||||||||||||||||||
Decrease related to tax positions taken in prior years | (32,602 | ) | (1,346 | ) | (191 | ) | |||||||||||||||||||
Increase related to positions taken in the current year | — | — | — | ||||||||||||||||||||||
Balance, end of year | $ | — | $ | 32,602 | $ | 33,948 | |||||||||||||||||||
In connection with completion of the IRS examination of the Company’s 2011 consolidated corporate income tax return, the Company reduced its unrecognized tax benefits by $32.6 million ($31.0 million, net of federal benefit during the year ended December 31, 2014). The completion of the examination also resulted in an adjustment that decreased the Company’s net operating loss carry-forwards by approximately $15.5 million. | |||||||||||||||||||||||||
The Company’s practice is to classify interest and penalties related to income tax matters in income tax expense. The Company recorded no interest or penalties related to uncertain tax positions at December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
During the year ended December 31, 2014, the Company recognized tax benefits of $24.8 million related to cumulative windfall deductions on certain stock-based incentive plans. Under ASC 718, Compensation-Stock Compensation, these tax benefits are utilized for financial statement purposes when they serve to reduce income taxes payable. Under the Company’s accounting policy, net operating losses and benefits from other sources are recognized before windfall benefit carryovers. The tax benefit related to these windfall deductions was recorded as an increase to Stockholders’ Equity. | |||||||||||||||||||||||||
The earliest federal tax year that remains open for examination is 2008 since unutilized net operating loss carry-forwards from 2008 could be denied when claimed in future years. The earliest open years in the Company’s major state tax jurisdictions are 2001 and 2000 for Connecticut and New York, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt |
Credit Facility | |
The Company has an amended and restated senior secured revolving credit facility (the “Credit Facility”) that has a five-year term and provides borrowing capacity of up to $75.0 million, with a $7.5 million sub-limit for the issuance of standby letters of credit. In addition, the Credit Facility provides for a $50.0 million increase in borrowing capacity conditioned on approval by the lending group. The Credit Facility is secured by substantially all of the assets of the Company. During the third quarter of 2013, the Company repaid the $15.0 million then outstanding balance under the Credit Facility. At December 31, 2014 and 2013, there were no amounts outstanding under the Credit Facility. As of December 31, 2014, the Company had the capacity to draw on the entire $75.0 million under the Credit Facility. | |
Amounts outstanding under the Credit Facility bear interest at an annual rate equal to, at the Company’s option, either LIBOR for interest periods of one, two, three or six months or an alternate base rate (as defined in the Credit Facility agreement), plus, in each case, an applicable margin, that ranges from 0.75% to 2.50%. Under the terms of the Credit Facility, the Company is also required to pay certain fees, including an annual commitment fee that ranges from 0.35% to 0.50% on undrawn amounts and a letter of credit participation fee at an annual rate equal to the applicable margin as well as any applicable fronting fees, each of which is payable quarterly in arrears. | |
The Credit Facility contains customary covenants, including covenants that restrict (subject in certain instances to minimum thresholds or exceptions) the ability of the Company and certain of its subsidiaries to incur additional indebtedness, create liens, merge or make acquisitions, dispose of assets, enter into leases, sale/leasebacks or acquisitions of capital stock, and make loans, guarantees and investments, among other things. In addition, the Credit Facility contains certain financial covenants, the most restrictive of which include: (i) a minimum interest coverage ratio (generally, adjusted EBITDA to interest expense as defined in and for the period specified in the Credit Facility agreement) of at least 4.00:1, and (ii) a leverage ratio (generally, total debt as of any date to adjusted EBITDA as defined in and for the period specified in the Credit Facility agreement) of no greater than 2.75:1. For purposes of the Credit Facility, adjusted EBITDA generally means, for any period, net income of the Company before interest expense, income taxes, depreciation and amortization expense, and excluding non-cash stock-based compensation, unrealized mark-to-market gains and losses, certain severance, and certain non-cash non-recurring gains and losses as described in and specified under the Credit Facility. At December 31, 2014 and 2013, the Company was in compliance with all financial covenants under the Credit Facility. | |
The Credit Facility agreement also contains customary provisions regarding events of default which could result in an acceleration of amounts due under the facility. Such events of default include our failure to pay principal or interest when due, our failure to satisfy or comply with covenants, a change of control, the imposition of certain judgments, the invalidation of liens we have granted, and a cross-default to other debt obligations. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies |
Legal Matters | |
The Company is regularly involved in litigation and arbitration as well as examinations, inquiries and investigations by various regulatory bodies, including the SEC, involving its compliance with, among other things, securities laws, client investment guidelines, laws governing the activities of broker-dealers and other laws and regulations affecting its products and other activities. Legal and regulatory matters of this nature involve or may involve the Company’s activities as an employer, issuer of securities, investor, investment adviser, broker-dealer or taxpayer. In addition, in the normal course of business, the Company discusses matters with its regulators raised during regulatory examinations or is otherwise subject to their inquiry. These matters could result in censures, fines, penalties or other sanctions. | |
The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. In addition, in the event the Company determines that a loss is not probable, but is reasonably possible, and it becomes possible to develop what the Company believes to be a reasonable range of possible loss, then the Company will include disclosures related to such matter as appropriate and in compliance with ASC 450, Loss Contingencies. The disclosures, accruals or estimates, if any, resulting from the foregoing analysis are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. The Company believes, based on its current knowledge that the outcomes of its legal and regulatory proceedings are not likely, either individually or in the aggregate, to have a material adverse effect on its consolidated financial condition. However, in the event of unexpected subsequent developments and given the inherent unpredictability of these legal and regulatory matters, the Company can provide no assurance that its assessment of any claim, dispute, regulatory examination or investigation or other legal matter will reflect the ultimate outcome and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s results of operations or cash flows in particular quarterly or annual periods. | |
Tom Cummins v. Virtus Investment Partners Inc. et al | |
On February 20, 2015, a putative class action complaint alleging violation of the federal securities laws was filed by an individual shareholder against the Company and certain of the Company’s current officers in the United States District Court for the Southern District of New York. The complaint was purportedly filed on behalf of all purchasers of the Company’s common stock between May 28, 2013 and December 22, 2014, inclusive (the “Class Period”). The complaint alleges that, during the Class Period, the defendants disseminated materially false and misleading statements and concealed material adverse facts relating to certain funds subadvised by F-Squared Investments. The complaint alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5. The plaintiff seeks to recover unspecified damages on behalf of the class members. The Company believes that the suit is without merit and intends to defend it vigorously. The Company believes that there is not a material loss that is probable and reasonably estimable related to this claim. | |
Lease Commitments | |
The Company incurred rental expenses, primarily related to office space, under operating leases of $3.7 million, $3.4 million and $3.3 million in 2014, 2013 and 2012, respectively. Minimum aggregate rental payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2014 are as follows: $3.7 million in 2015; $3.7 million in 2016; $3.6 million in 2017; $3.4 million in 2018; $2.1 million in 2019; and $4.0 million thereafter. |
Equity_Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Equity Transactions | 10. Equity Transactions |
During the years ended December 31, 2014 and 2013, pursuant to the Company’s share repurchase program implemented in the fourth quarter of 2010, the Company repurchased 225,441 and 105,000 common shares, respectively, at a weighted average price of $178.54 per share and $187.61 per share, respectively, plus transaction costs for a total cost of approximately $40.3 million and $19.7 million, respectively. As of December 31, 2014, the Company has repurchased a total of 575,441 shares of common stock at a weighted average price of $134.98 per share plus transaction costs for a total cost of $77.7 million. | |
On December 10, 2014, the Company’s board of directors authorized an additional 500,000 shares of common stock under the current share repurchase program. Total shares remaining available for repurchase as of December 31, 2014 were 624,559. Under the terms of the program, the Company may repurchase shares of its common stock from time to time at its discretion through open market repurchases and/or privately negotiated transactions, depending on price and prevailing market and business conditions. The program, which has no specified term, may be suspended or terminated at any time. | |
During the second, third and fourth quarters of the year ended December 31, 2014, the Board of Directors declared quarterly cash dividends of $0.45 each. Total dividends declared were $12.5 million for the year ended December 31, 2014. At December 31, 2014, $4.3 million is shown as dividends payable in liabilities in the Consolidated Balance Sheet, primarily representing the fourth quarter dividend to be paid on February 13, 2015 to all shareholders of record on January 30, 2015. There were no cash dividends during the year ended December 31, 2013. | |
In September 2013, the Company issued 1.3 million shares of common stock in a public offering for net proceeds of $191.8 million after underwriting discounts, commissions and other offering expenses, pursuant to an already effective shelf registration statement. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Accumulated Other Comprehensive Income | 11. Accumulated Other Comprehensive Income | ||||||||
The changes in accumulated other comprehensive income by, component, are as follows: | |||||||||
Unrealized Gains | Foreign | ||||||||
and (Losses) | Currency | ||||||||
on Securities | Translation | ||||||||
Available-for- | Adjustments | ||||||||
Sale | |||||||||
($ in thousands) | |||||||||
Balance December 31, 2013 | $ | (231 | ) | $ | 81 | ||||
Unrealized net gains on investments, net of tax of ($76) | 124 | — | |||||||
Foreign currency translation adjustments, net of tax of $132 | — | (216 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | — | |||||||
Net current-period other comprehensive income | 124 | (216 | ) | ||||||
Balance December 31, 2014 | $ | (107 | ) | $ | (135 | ) | |||
Unrealized Gains | Foreign | ||||||||
and (Losses) | Currency | ||||||||
on Securities | Translation | ||||||||
Available-for- | Adjustments | ||||||||
Sale | |||||||||
($ in thousands) | |||||||||
Balance December 31, 2012 | $ | (287 | ) | $ | — | ||||
Unrealized net gains on investments, net of tax of $223 | 56 | — | |||||||
Foreign currency translation adjustments, net of tax of ($50) | — | 81 | |||||||
Amounts reclassified from accumulated other comprehensive income | — | — | |||||||
Net current-period other comprehensive income | 56 | 81 | |||||||
Balance December 31, 2013 | $ | (231 | ) | $ | 81 | ||||
Capital_and_Reserve_Requiremen
Capital and Reserve Requirement Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Capital and Reserve Requirement Information | 12. Capital and Reserve Requirement Information | ||||||||||||
As a broker-dealer registered with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority, our subsidiary, VP Distributors, LLC (“VPD”), is subject to certain rules regarding minimum net capital. VPD operates pursuant to Rule 15c3-1(a), promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and, accordingly, is required to maintain a ratio of “aggregate indebtedness” to “net capital” (as those items are defined in the rule) which may not exceed 15.0 to 1.0. | |||||||||||||
Aggregate indebtedness, net capital, and the resultant ratio for VPD were as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands) | |||||||||||||
Aggregate indebtedness | $ | 23,511 | $ | 28,020 | $ | 23,443 | |||||||
Net capital | 21,919 | 22,086 | 16,617 | ||||||||||
Ratio of aggregate indebtedness to net capital | 1.1 to 1 | 1.3 to 1 | 1.4 to 1 | ||||||||||
VPD’s minimum required net capital at December 31, 2014 and 2013 based on its aggregate indebtedness on those dates was $1.6 million and $1.9 million, respectively. | |||||||||||||
The operations of VPD do not include the physical handling of securities or the maintenance of open customer accounts. Accordingly, VPD claims exemption from the reserve provisions of Rule 15c3-3 promulgated under the Exchange Act pursuant to the exemption allowed by paragraph (k)(2)(i) of such rule. |
Restructuring_and_Severance
Restructuring and Severance | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Severance | 13. Restructuring and Severance |
During 2014, 2013 and 2012, the Company recorded restructuring charges of $0.3 million, $0.2 million and $1.6 million, respectively, related to headcount reductions and consolidation activities. These restructuring and severance charges have been included within restructuring and severance expenses in the accompanying Consolidated Statements of Operations. There was less than $0.1 million of unpaid severance and related charges as of December 31, 2014. |
BMO_Related_Party_Transactions
BMO Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
BMO Related Party Transactions | 14. BMO Related Party Transactions |
In May 2006, the Company acquired the rights to advise, distribute and administer the Insight Funds from BMO Asset Management Corp. (“BMO”), a subsidiary of BMO Financial Corp. BMO and BMO Financial Corp., a significant stockholder of the Company, are related parties of the Company. | |
Subadvisory investment management fees and distribution and administration fee expenses paid or payable to BMO were $0.1 million, $0.5 million and $2.1 million for the years ended December 31, 2014, 2013 and 2012 respectively. No amount was payable to BMO and its affiliates at December 31, 2014. At December 31, 2013, less than $0.1 million was payable to BMO and its affiliates related to subadvisory investment management fees and distribution fees. |
Retirement_Savings_Plan
Retirement Savings Plan | 12 Months Ended |
Dec. 31, 2014 | |
Postemployment Benefits [Abstract] | |
Retirement Savings Plan | 15. Retirement Savings Plan |
The Company sponsors a defined contribution 401(k) retirement plan (the “401(k) Plan”) covering all employees who meet certain age and service requirements. Employees may contribute a percentage of their eligible compensation into the 401(k) Plan, subject to certain limitations imposed by the Internal Revenue Code. The Company matches employees’ contributions at a rate of 100% of employees’ contributions up to the first 3.0% and 50.0% of the next 2.0% of the employees’ compensation contributed to the 401(k) Plan. The Company’s matching contributions were $2.8 million, $2.5 million and $2.0 million in 2014, 2013 and 2012, respectively. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation | 16. Stock-Based Compensation | ||||||||||||
The Company has an Omnibus Incentive and Equity Plan (the “Plan”) under which officers, employees and directors may be granted equity-based awards, including restricted stock units (“RSUs”), stock options and unrestricted shares of common stock. At December 31, 2014, 427,781 shares of common stock remain available for issuance of the 1,800,000 shares that were reserved for issuance under the Plan. Each RSU entitles the holder to one share of common stock when the restriction expires. RSUs generally have a term of one to three years and may be time-vested or performance-contingent. Stock options generally cliff vest after three years and have a contractual life of ten years. Stock options are granted with an exercise price equal to the fair market value of the shares at the date of grant. The fair value of each RSU is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Shares that are issued upon exercise of stock options and vesting of RSUs are newly issued shares from the Plan and are not issued from treasury stock. | |||||||||||||
Stock-based compensation expense is summarized as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands) | |||||||||||||
Stock-based compensation expense | $ | 9,778 | $ | 7,960 | $ | 6,927 | |||||||
RSU activity for the year ended December 31, 2014 is summarized as follows: | |||||||||||||
Number | Weighted | ||||||||||||
of shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 233,763 | $ | 87.97 | ||||||||||
Granted | 77,947 | $ | 183.83 | ||||||||||
Forfeited | (13,860 | ) | $ | 139.61 | |||||||||
Settled | (117,914 | ) | $ | 60.91 | |||||||||
Outstanding at December 31, 2014 | 179,936 | $ | 143.25 | ||||||||||
The grant-date intrinsic value of RSUs granted during the year ended December 31, 2014 was $14.3 million. At December 31, 2014, outstanding RSUs have a weighted average remaining contractual life of 1.1 years. The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2014, 2013 and 2012 was $183.83, $188.36 and $81.47 per share, respectively. The total fair value of RSUs vested during the years ended December 31, 2014, 2013 and 2012 was $21.1 million, $17.9 million and $30.7 million, respectively. For the years ended December 31, 2014, 2013 and 2012, a total of 50,952, 38,222 and 143,102 RSUs, respectively, were withheld through net share settlement by the Company to settle minimum employee tax withholding obligations. The Company paid $9.1 million, $7.5 million and $11.5 million for the years ended December 31, 2014, 2013 and 2012, respectively, in minimum employee tax withholding obligations related to RSUs withheld. These net share settlements had the effect of share repurchases by the Company as they reduced the number of shares that would have been otherwise issued as a result of the vesting. | |||||||||||||
As of December 31, 2014, unamortized stock-based compensation expense for outstanding RSUs was $12.6 million, with a weighted average remaining amortization period of 1.1 years. As of December 31, 2013, unamortized stock-based compensation expense for outstanding RSUs and stock options was $8.9 million and $0.1 million, respectively, with weighted average remaining amortization periods of 1.0 years and 0.2 years, respectively. The Company did not capitalize any stock-based compensation expenses during the years ended December 31, 2014, 2013 and 2012. There were no unvested stock options at December 31, 2014. | |||||||||||||
During the year ended December 31, 2014, the Company granted 27,782 RSUs which contain two performance based metrics in addition to a service condition. The two performance metrics are based on the Company’s growth in operating income, as adjusted, relative to peers over a one year period and total shareholder return (“TSR”) relative to peers over a three year period. For the year ended December 31, 2014, total stock-based compensation expense included $1.4 million for these performance contingent RSUs. As of December 31, 2014, unamortized stock-based compensation expense related to these performance contingent RSUs was $3.5 million. | |||||||||||||
Compensation expense for these performance contingent awards is recognized over the three year service period based upon the value determined under the intrinsic value method for the growth in operating income, as adjusted portion of the awards and the Monte Carlo simulation valuation model for the TSR portion of the awards since it represents a market condition. Compensation expense for the TSR portion of the awards is fixed at the date of grant and will not be adjusted in future periods based upon the achievement of the TSR performance metric. Compensation expense for the growth in operating income, as adjusted, portion of the awards is recorded each period based upon a probability assessment of the expected outcome of the performance metric with a final adjustment upon the final outcome. | |||||||||||||
Stock option activity for the year ended December 31, 2014 is summarized as follows: | |||||||||||||
Number | Weighted | ||||||||||||
of shares | Average | ||||||||||||
Exercise Price | |||||||||||||
Outstanding at December 31, 2013 | 190,160 | $ | 20.11 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (27,336 | ) | $ | 27.97 | |||||||||
Forfeited | — | $ | — | ||||||||||
Outstanding at December 31, 2014 | 162,824 | $ | 18.79 | ||||||||||
Vested and exercisable at December 31, 2014 | 162,824 | $ | 18.79 | ||||||||||
The weighted-average remaining contractual term for stock options outstanding at December 31, 2014 and December 31, 2013 was 3.9 and 4.8 years, respectively. The weighted-average remaining contractual term for stock options vested and exercisable at December 31, 2014 was 3.9 years. At December 31, 2014, the aggregate intrinsic value of stock options outstanding and vested and exercisable was $24.7 million. The total grant-date fair value of stock options vested during the years ended December 31, 2014, 2013 and 2012 was $0.4 million, $0.2 million and $1.2 million, respectively. The total intrinsic value of stock options exercised for the years ended December 31, 2014, 2013 and 2012 was $4.2 million, $5.1 million, $9.2 million, respectively. Cash received from stock option exercises was $0.8 million, $0.6 million and $2.6 million for 2014, 2013 and 2012, respectively. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
The Company offers an employee stock purchase plan that allows employees to purchase shares of common stock on the open market at market price through after-tax payroll deductions. The initial transaction fees are paid for by the Company and shares of common stock are purchased on a quarterly basis. The Company does not reserve shares for this plan or discount the purchase price of the shares. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | 17. Earnings Per Share | ||||||||||||
The computation of basic and diluted earnings per share is as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands, except per share amounts) | |||||||||||||
Net Income | $ | 96,965 | $ | 77,130 | $ | 37,773 | |||||||
Noncontrolling interests | 735 | (1,940 | ) | (101 | ) | ||||||||
Allocation of earnings to preferred stockholders | — | — | (64 | ) | |||||||||
Net Income Attributable to Common Stockholders | $ | 97,700 | $ | 75,190 | $ | 37,608 | |||||||
Shares: | |||||||||||||
Basic: Weighted-average number of shares outstanding | 9,091 | 8,188 | 7,727 | ||||||||||
Plus: Incremental shares from assumed conversion of dilutive instruments | 201 | 245 | 346 | ||||||||||
Diluted: Weighted-average number of shares outstanding | 9,292 | 8,433 | 8,073 | ||||||||||
Earnings per share—basic | $ | 10.75 | $ | 9.18 | $ | 4.87 | |||||||
Earnings per share—diluted | $ | 10.51 | $ | 8.92 | $ | 4.66 | |||||||
For the year ended December 31, 2014, there were 6,085 instruments excluded from the above computations of weighted-average shares for diluted EPS because the effect would be anti-dilutive. For the years ended December 31, 2013 and 2012, there were no instruments excluded from the above computations of weighted-average shares for diluted EPS because the effect would be anti-dilutive. |
Concentration_of_Credit_Risk
Concentration of Credit Risk | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Concentration of Credit Risk | 18. Concentration of Credit Risk | ||||||||||||
The concentration of credit risk with respect to advisory fees receivable is generally limited due to the short payment terms extended to clients by the Company. The following funds provided 10 percent or more of the total revenues of the Company: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands) | |||||||||||||
Virtus Premium AlphaSector™ Fund | |||||||||||||
Investment management, administration and transfer agent fees | $ | 61,566 | $ | 41,921 | $ | 27,987 | |||||||
Percent of total revenues | 14 | % | 11 | % | 12 | % | |||||||
Virtus Multi-Sector Short Term Bond Fund | |||||||||||||
Investment management, administration and transfer agent fees | $ | 55,401 | $ | 52,568 | $ | 39,475 | |||||||
Percent of total revenues | 12 | % | 14 | % | 17 | % | |||||||
Virtus Emerging Markets Opportunities Fund | |||||||||||||
Investment management, administration and transfer agent fees | $ | 50,435 | $ | 53,202 | $ | 29,818 | |||||||
Percent of total revenues | 11 | % | 14 | % | 12 | % |
Consolidated_Sponsored_Investm
Consolidated Sponsored Investment Products | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Consolidated Sponsored Investment Products | 19. Consolidated Sponsored Investment Products | ||||||||||||||||
Sponsored Investment Products | |||||||||||||||||
In the normal course of its business, the Company sponsors various types of investment products. The Company consolidates an investment product when it owns a majority of the voting interest in the entity or it is the primary beneficiary of an investment product that is a VIE. The consolidation and deconsolidation of these investment products has no impact on net income attributable to stockholders. The Company’s risk with respect to these investments is limited to its investment in these products. The Company has no right to the benefits from, and does not bear the risks associated with, these investment products, beyond the Company’s investments in, and fees generated from these products. If the Company were to liquidate, these investments would not be available to the general creditors of the Company. The Company does not consider cash and investments held by consolidated sponsored investment products to be assets of the Company other than its direct investment in these products. | |||||||||||||||||
As of December 31, 2014 and December 31, 2013, the Company consolidated twelve and eight sponsored investment products, respectively. During the year ended December 31, 2014, the Company consolidated six additional sponsored investment products and deconsolidated two sponsored investment product because it no longer had a majority voting interest. | |||||||||||||||||
The following table presents the balances of the consolidated sponsored investment products that were reflected in the Consolidated Balance Sheets as of December 31, 2014 and 2013: | |||||||||||||||||
As of December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 8,687 | $ | 531 | |||||||||||||
Total investments | 236,652 | 139,054 | |||||||||||||||
All other assets | 6,960 | 9,595 | |||||||||||||||
Total liabilities | (12,556 | ) | (8,435 | ) | |||||||||||||
Redeemable noncontrolling interest | (23,071 | ) | (42,186 | ) | |||||||||||||
The Company’s net interests in consolidated sponsored investment products | $ | 216,672 | $ | 98,559 | |||||||||||||
Consolidation | |||||||||||||||||
The following tables reflect the impact of the consolidated sponsored investment products in the Consolidated Balance Sheets as of December 31, 2014 and 2013, respectively: | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Balance Sheet | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 202,847 | $ | 8,687 | $ | — | $ | 211,534 | |||||||||
Total investments | 279,863 | 236,652 | (216,415 | ) | 300,100 | ||||||||||||
All other assets | 180,436 | 6,960 | (257 | ) | 187,139 | ||||||||||||
Total assets | $ | 663,146 | $ | 252,299 | $ | (216,672 | ) | $ | 698,773 | ||||||||
Total liabilities | $ | 99,794 | $ | 12,813 | $ | (257 | ) | $ | 112,350 | ||||||||
Redeemable noncontrolling interest | — | — | 23,071 | 23,071 | |||||||||||||
Equity attributable to stockholders of the Company | 563,542 | 239,486 | (239,486 | ) | 563,542 | ||||||||||||
Non-redeemable noncontrolling interest | (190 | ) | — | — | (190 | ) | |||||||||||
Total liabilities and equity | $ | 663,146 | $ | 252,299 | $ | (216,672 | ) | $ | 698,773 | ||||||||
As of December 31, 2013 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Balance Sheet | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 271,014 | $ | 531 | $ | — | $ | 271,545 | |||||||||
Total investments | 135,692 | 139,054 | (98,434 | ) | 176,312 | ||||||||||||
All other assets | 187,627 | 9,595 | (125 | ) | 197,097 | ||||||||||||
Total assets | $ | 594,333 | $ | 149,180 | $ | (98,559 | ) | $ | 644,954 | ||||||||
Total liabilities | $ | 101,465 | $ | 8,560 | $ | (125 | ) | $ | 109,900 | ||||||||
Redeemable noncontrolling interest | — | — | 42,186 | 42,186 | |||||||||||||
Equity attributable to stockholders of the Company | 492,930 | 140,620 | (140,620 | ) | 492,930 | ||||||||||||
Non-redeemable noncontrolling interest | (62 | ) | — | — | (62 | ) | |||||||||||
Total liabilities and equity | $ | 594,333 | $ | 149,180 | $ | (98,559 | ) | $ | 644,954 | ||||||||
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and equity and recording of any noncontrolling interest. | ||||||||||||||||
The following table reflects the impact of the consolidated sponsored investment products in the Consolidated Statement of Operations for the years ended December 31 2014, 2013 and 2012, respectively: | |||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Statement of | ||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 451,259 | $ | — | $ | (661 | ) | $ | 450,598 | ||||||||
Total operating expenses | 316,840 | 3,699 | (661 | ) | 319,878 | ||||||||||||
Operating income (loss) | 134,419 | (3,699 | ) | — | 130,720 | ||||||||||||
Total other non-operating income (expense) | 2,502 | 2,619 | 473 | 5,594 | |||||||||||||
Income (loss) before income tax expense | 136,921 | (1,080 | ) | 473 | 136,314 | ||||||||||||
Income tax expense | 39,349 | — | — | 39,349 | |||||||||||||
Net income (loss) | 97,572 | (1,080 | ) | 473 | 96,965 | ||||||||||||
Noncontrolling interests | 128 | — | 607 | 735 | |||||||||||||
Net income (loss) attributable to the Company | $ | 97,700 | $ | (1,080 | ) | $ | 1,080 | $ | 97,700 | ||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Statement of | ||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 389,202 | $ | — | $ | 13 | $ | 389,215 | |||||||||
Total operating expenses | 274,913 | 785 | 13 | 275,711 | |||||||||||||
Operating income (loss) | 114,289 | (785 | ) | — | 113,504 | ||||||||||||
Total other non-operating income (expense) | 5,620 | 6,098 | (3,314 | ) | 8,404 | ||||||||||||
Income (loss) before income tax expense | 119,909 | 5,313 | (3,314 | ) | 121,908 | ||||||||||||
Income tax expense | 44,778 | — | — | 44,778 | |||||||||||||
Net income (loss) | 75,131 | 5,313 | (3,314 | ) | 77,130 | ||||||||||||
Noncontrolling interests | 59 | — | (1,999 | ) | (1,940 | ) | |||||||||||
Net income (loss) attributable to the Company | $ | 75,190 | $ | 5,313 | $ | (5,313 | ) | $ | 75,190 | ||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Statement of | ||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 279,919 | $ | — | $ | 167 | $ | 280,086 | |||||||||
Total operating expenses | 219,326 | 148 | 167 | 219,641 | |||||||||||||
Operating income (loss) | 60,593 | (148 | ) | — | 60,445 | ||||||||||||
Total other non-operating income (expense) | 4,106 | 2,649 | (2,397 | ) | 4,358 | ||||||||||||
Income (loss) before income tax expense | 64,699 | 2,501 | (2,397 | ) | 64,803 | ||||||||||||
Income tax expense | 27,030 | — | — | 27,030 | |||||||||||||
Net income (loss) | 37,669 | 2,501 | (2,397 | ) | 37,773 | ||||||||||||
Noncontrolling interests | 3 | — | (104 | ) | (101 | ) | |||||||||||
Allocation of earnings to preferred stockholders | (64 | ) | — | — | (64 | ) | |||||||||||
Net income (loss) attributable to the Company | $ | 37,608 | $ | 2,501 | $ | (2,501 | ) | $ | 37,608 | ||||||||
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and equity and recording of any noncontrolling interest. | ||||||||||||||||
Fair Value Measurements of Consolidated Sponsored Investment Products | |||||||||||||||||
The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring by fair value hierarchy level were as follows: | |||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Debt securities | $ | — | $ | 135,050 | $ | 1,065 | $ | 136,115 | |||||||||
Equity securities | 82,417 | 18,120 | — | 100,537 | |||||||||||||
Derivatives | 154 | 227 | — | 381 | |||||||||||||
Total Assets Measured at Fair Value | $ | 82,571 | $ | 153,397 | $ | 1,065 | $ | 237,033 | |||||||||
Liabilities | |||||||||||||||||
Derivatives | $ | 191 | $ | — | $ | — | $ | 191 | |||||||||
Short sales | 7,491 | 674 | — | 8,165 | |||||||||||||
Total Liabilities Measured at Fair Value | $ | 7,682 | $ | 674 | $ | — | $ | 8,356 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Debt securities | $ | — | $ | 47,114 | $ | — | $ | 47,114 | |||||||||
Equity securities | 91,940 | — | — | 91,940 | |||||||||||||
Total Assets Measured at Fair Value | $ | 91,940 | $ | 47,114 | $ | — | $ | 139,054 | |||||||||
The following is a discussion of the valuation methodologies used for the assets and liabilities of the Company’s consolidated sponsored investment products measured at fair value. | |||||||||||||||||
Investments of consolidated sponsored investment products represent the underlying debt and equity securities held in sponsored products which are consolidated by the Company. Equity securities are valued at the official closing price on the exchange on which the securities are traded and are categorized within Level 1. Level 2 investments include certain equity securities, including non-US securities, for which closing prices are not readily available or are deemed to not reflect readily available market prices and are valued using an independent pricing service as well as most debt securities, which are valued based on quotations received from independent pricing services or from dealers who make markets in such securities. Pricing services do not provide pricing for all securities, and therefore indicative bids from dealers are utilized, which are based on pricing models used by market makers in the security and are also included within Level 2. Level 3 investments include debt securities that are not widely traded, are illiquid and are priced by dealers based on pricing models used by market makers in the security. | |||||||||||||||||
The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value. | |||||||||||||||||
Level 3 | |||||||||||||||||
Debt | |||||||||||||||||
securities (a) | |||||||||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||||||
Purchases | 1,119 | ||||||||||||||||
Sales | — | ||||||||||||||||
Paydowns | (3 | ) | |||||||||||||||
Change in unrealized gain/loss | (51 | ) | |||||||||||||||
Balance at December 31, 2014 | $ | 1,065 | |||||||||||||||
(a) | None of the securities were internally fair valued at December 31, 2014. | ||||||||||||||||
Securities with an end of period market value of $1.5 million were transferred from Level 1 to Level 2 during the year ended December 31, 2014 because certain non-US securities no longer had readily available closing prices or were deemed not reflective of readily available closing prices. There were no transfers between Level 1, Level 2 and Level 3 during the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
Derivatives | |||||||||||||||||
Beginning in the second quarter of 2014, the Company consolidated investment products which include derivative instruments as part of their investment strategies. These derivatives may include futures contracts, options contracts and forward contracts. The fair value of such derivatives at December 31, 2014 was immaterial. The change in fair value of such derivatives, which is recorded in realized and unrealized gain (loss) on investments of consolidated sponsored investment products, net, was immaterial for the year ended December 31, 2014. In connection with entering into these derivative contracts these funds may be required to pledge to the broker an amount of cash equal to the “initial margin” requirements that varies based on the type of derivative. The cash pledged or on deposit is recorded in the Consolidated Balance Sheet of the Company as Cash pledged or on deposit of consolidated sponsored investment products. | |||||||||||||||||
Short Sales | |||||||||||||||||
Some of the Company’s consolidated sponsored investment products may engage in short sales, which are transactions in which a fund sells a security that it does not own (or that it owns but does not intend to deliver) in anticipation that the price of the security will decline. Short sales are recorded in the Consolidated Balance Sheet within Other liabilities of consolidated sponsored investment products. | |||||||||||||||||
Borrowings | |||||||||||||||||
One of our consolidated sponsored investment products employs leverage in the form of using proceeds from shorts, which allows it to use its long positions as collateral in order to purchase additional securities. The use of these proceeds from shorts is secured by the assets of the consolidated sponsored investment product which are held with the custodian in a separate account. This consolidated sponsored investment product is permitted to borrow up to 33.33% of its total assets. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | 20. Subsequent Event |
On January 26, 2015, the Company announced an agreement to acquire a majority interest in ETF Issuer Solutions (“ETFis”), a New York City-based company that operates a platform for listing, operating, and distributing exchange-traded funds. The transaction is expected to close in March 2015. | |
On February 18, 2015, the Company declared a quarterly cash dividend of $0.45 per common share to be paid on May 13, 2015 to shareholders of record at the close of business on April 30, 2015. |
Selected_Quarterly_Data
Selected Quarterly Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected Quarterly Data | 21. Selected Quarterly Data (Unaudited) | ||||||||||||||||
2014 | |||||||||||||||||
($ in thousands, except share data) | Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter (1) | Quarter | Quarter | ||||||||||||||
Revenues | $ | 112,137 | $ | 117,841 | $ | 112,749 | $ | 107,871 | |||||||||
Operating Income | 36,665 | 38,927 | 22,502 | 32,626 | |||||||||||||
Net Income Attributable to Common Stockholders | 18,879 | 37,340 | 19,543 | 21,938 | |||||||||||||
Earnings per share—Basic | $ | 2.09 | $ | 4.1 | $ | 2.14 | $ | 2.41 | |||||||||
Earnings per share—Diluted | $ | 2.05 | $ | 4.02 | $ | 2.1 | $ | 2.34 | |||||||||
2013 | |||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 106,498 | $ | 100,409 | $ | 96,140 | $ | 86,168 | |||||||||
Operating Income | 33,892 | 31,630 | 26,882 | 21,100 | |||||||||||||
Net Income Attributable to Common Stockholders | 24,756 | 21,089 | 15,385 | 13,960 | |||||||||||||
Earnings per share—Basic | $ | 2.72 | $ | 2.64 | $ | 1.97 | $ | 1.79 | |||||||||
Earnings per share—Diluted | $ | 2.65 | $ | 2.56 | $ | 1.91 | $ | 1.73 | |||||||||
-1 | The third quarter of 2014 includes a net tax benefit of approximately $15.5 million due to completion of the audit of the Company’s 2011 federal corporate income tax return. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation |
The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Company, its subsidiaries and sponsored investment products in which it has a controlling financial interest. The Company is generally considered to have a controlling financial interest when it owns a majority of the voting interest in an entity or otherwise has the power to govern the financial and operating policies of the subsidiary. See Note 19 for additional information related to the consolidation of sponsored investment products. Material intercompany accounts and transactions have been eliminated. | |
The Company also evaluates any variable interest entities (“VIEs”) in which the Company has a variable interest for consolidation. A VIE is an entity in which either (a) the equity investment at risk is not sufficient to permit the entity to finance its own activities without additional financial support or (b) where as a group, the holders of the equity investment at risk do not possess: (i) the power to direct the activities that most significantly impact the entity’s performance; (ii) the obligation to absorb expected losses or the right to receive expected residual returns of the entity; or (iii) proportionate voting and economic interests and where substantially all of the entity’s activities either involve or are conducted on behalf of the equity holders. If any entity has any of these characteristics, it is considered a VIE and required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that has both the power to direct the activities that most significantly impact the VIE’s economic performance and has the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE. | |
Collateralized Debt Obligations | Collateralized Debt Obligations |
As of December 31, 2014 and 2013, certain of the Company’s affiliates served as the collateral manager for collateralized loan and collateralized bond obligations (collectively, “CDOs”). The CDOs’ assets and liabilities reside in bankruptcy remote, special purpose entities in which the Company has no ownership in, nor holds any notes issued by, the CDOs and provides neither recourse nor guarantees. Accordingly, the Company’s financial exposure to these CDOs is limited only to the collateral investment management fees it earns, which totaled $1.6 million, $1.7 million and $2.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
The CDOs are considered VIEs, and as a result, the Company is required to consider the nature of its involvement in these VIEs in determining if it should consolidate the entity. In assessing consolidation of the CDOs, the Company assessed whether the collateral management fees represented a variable interest and the Company was the primary beneficiary of the VIE. The primary beneficiary assessment includes an analysis of the rights of the Company in its capacity as collateral manager and an analysis of whether the Company could receive significant benefits or absorb significant losses from the CDO. | |
The Company determined that its investment management fees received as collateral manager for certain CDOs did not represent a variable interest due to the anticipated fees being fixed in nature, senior to interest and principal payments, and any subordinated fee elements were insignificant relative to the total fee and total anticipated economic performance of the CDOs. | |
Noncontrolling Interest | Noncontrolling Interest |
Noncontrolling interests represent the profit or loss attributed to third party investors in consolidated sponsored investment products and other affiliates. Movements in amounts attributable to noncontrolling interests in consolidated entities on the Company’s Consolidated Statements of Operations offset the operating results, gains and losses and interest expense of the third party investors. Noncontrolling interests related to certain consolidated sponsored investment products are classified as redeemable noncontrolling interests because investors in these funds may request withdrawals at any time. | |
Use of Estimates | Use of Estimates |
The preparation of the consolidated financial statements requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management believes the estimates used in preparing the consolidated financial statements are reasonable and prudent. Actual results could differ from those estimates. | |
Segment Information | Segment Information |
Accounting Standards Codification (“ASC”) 280, Segment Reporting, establishes disclosure requirements relating to operating segments in annual and interim financial statements. Business or operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the chief operating decision maker in deciding how to allocate resources and assess performance. The Company operates in one business segment, namely as an asset manager providing investment management and distribution services for individual and institutional clients. The Company’s Chief Executive Officer is the Company’s chief operating decision maker. Although the Company does make some disclosures regarding assets under management and other asset flows by product, the Company’s determination that it operates in one business segment is based on the fact that the same investment and operational resources support multiple products, they have the same or similar regulatory framework and that the Company’s chief operating decision maker reviews the Company’s financial performance at a consolidated level. Investment organizations within the Company are generally not aligned with specific product lines. Investment professionals manage both retail and institutional products. | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Cash and cash equivalents consist of cash in banks and money market fund investments. | |
Marketable Securities | Marketable Securities |
Marketable securities consist of investments in the Company’s sponsored mutual funds and other publicly traded securities which are carried at fair value in accordance with ASC 320, Investments—Debt and Equity Securities (“ASC 320”). Marketable securities are marked to market based on the respective publicly quoted net asset values of the funds or market prices of the equity securities or bonds. Marketable securities transactions are recorded on a trade date basis. Marketable securities include sponsored mutual funds, sponsored variable insurance funds and other equity securities classified as trading securities and sponsored closed-end funds classified as available-for-sale securities. Any unrealized appreciation or depreciation on available for sale securities, net of income taxes, is reported as a component of accumulated other comprehensive income in equity attributable to stockholders. | |
On a quarterly basis, the Company conducts a review to assess whether other-than-temporary impairment exists on its available-for-sale marketable securities. Other-than-temporary declines in value may exist if the fair value of a marketable security has been below the carrying value for an extended period of time. If an other-than-temporary decline in value is determined to exist, the unrealized investment loss, net of tax, is recognized in the Consolidated Statements of Operations in the period in which the other-than-temporary decline in value occurs, as well as an accompanying permanent adjustment to accumulated other comprehensive income. | |
Equity Method Investments | Equity Method Investments |
The Company’s investment in noncontrolled investees is accounted for under the equity method of accounting in accordance with ASC 323, Investments-Equity Method and Joint Ventures. Under the equity method of accounting, the Company’s share of the noncontrolled affiliate’s net income or loss is recorded in other income (expense), net in the accompanying Consolidated Statements of Operations. Distributions received reduce the Company’s investment balance. The investment is evaluated for impairment as events or changes indicate that the carrying amount exceeds its fair value. If the carrying amount of an investment does exceed its fair value and the decline in fair value is deemed to be other than temporary, an impairment charge will be recorded. | |
Non-qualified Retirement Plan Assets and Liabilities | Non-qualified Retirement Plan Assets and Liabilities |
The Company has a non-qualified retirement plan (the “Excess Incentive Plan”) that allows certain employees to voluntarily defer compensation. Under the Excess Incentive Plan, participants elect to defer a portion of their compensation which the Company then contributes into a trust. Each participant is responsible for designating investment options for assets they contribute and the ultimate distribution paid to each participant reflects any gains or losses on the assets realized while in the trust. The Company holds the Excess Incentive Plan assets in a rabbi trust, which is subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or insolvency. Assets held in trust are included in investments and are carried at fair value in accordance with ASC 320; the associated obligations to participants are included in other liabilities in the Company’s Consolidated Balance Sheets. Assets held in trust consist of mutual funds and are recorded at fair value, utilizing Level 1 valuation techniques. | |
Deferred Commissions | Deferred Commissions |
Deferred commissions, which are included in other assets, are commissions paid to broker-dealers on sales of mutual fund shares. Deferred commissions are recovered by the receipt of monthly asset-based distributor fees from the mutual funds or contingent deferred sales charges received upon redemption of shares within one to five years, depending on the fund share class. The deferred costs resulting from the sale of shares are amortized on a straight-line basis over a one to five-year period, depending on the fund share class, or until the underlying shares are redeemed. Deferred commissions are periodically assessed for impairment and additional amortization expense is recorded, as appropriate. | |
Furniture, Equipment and Leasehold Improvements, Net | Furniture, Equipment and Leasehold Improvements, Net |
Furniture, equipment and leasehold improvements are recorded at cost. Depreciation is computed using the straight-line method over the estimated useful lives of three to seven years for furniture and office equipment, and three to five years for computer equipment and software. Leasehold improvements are depreciated over the shorter of the remaining estimated lives of the related leases or useful lives of the improvements. Major renewals or betterments are capitalized, and recurring repairs and maintenance are expensed as incurred. Leasehold improvements that are funded upfront by a landlord and are constructed for the benefit of the Company are recorded at cost and depreciated on a straight-line basis over the original minimum term of the lease and a corresponding lease incentive liability in the same amount is also recorded and initially amortized over the same period. | |
Leases | Leases |
The Company currently leases office space and equipment under various leasing arrangements. Leases are classified as either capital leases or operating leases, as appropriate. Most lease agreements are classified as operating leases and contain renewal options, rent escalation clauses or other inducements provided by the lessor. Rent expense under non-cancelable operating leases with scheduled rent increases or rent holidays is accounted for on a straight-line basis over the lease term, beginning on the date of initial possession or the effective date of the lease agreement. The amount of the excess of straight-line rent expense over scheduled payments is recorded as a deferred liability. Build-out allowances and other such lease incentives are recorded as deferred credits, and are amortized on a straight-line basis as a reduction of rent expense beginning in the period they are deemed to be earned, which generally coincides with the effective date of the lease. | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill |
Definite-lived intangible assets are comprised of acquired investment advisory contracts. These assets are amortized on a straight-line basis over the estimated useful lives of such assets, which range from one to sixteen years. Definite-lived intangible assets are evaluated for impairment on an ongoing basis under GAAP whenever events or circumstances indicate that the carrying value of the definite-lived intangible asset may not be fully recoverable. The Company determines if impairment has occurred by comparing estimates of future undiscounted cash flows to the carrying value of assets. Assets are considered impaired, and impairment is recorded, if the carrying value exceeds the expected future undiscounted cash flows. | |
Goodwill represents the excess of the purchase price of acquisitions and mergers over the identified net assets and liabilities acquired. In accordance with ASC 350, Goodwill and Other Intangible Assets, goodwill is not being amortized. A single reporting unit has been identified for the purpose of assessing potential future impairments of goodwill. An impairment analysis of goodwill is performed annually or more frequently, if warranted by events or changes in circumstances affecting the Company’s business. The Company follows the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2011-08, Testing Goodwill for Impairment, which states that an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. The Company’s 2014 and 2013 annual goodwill impairment analysis did not result in any impairment charges. | |
Indefinite-lived intangible assets are comprised of closed-end fund investment advisory contracts. These assets are tested for impairment annually and when events or changes in circumstances indicate the assets might be impaired. The Company follows ASU No. 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which provides entities with an option to perform a qualitative assessment of indefinite-lived intangible assets other than goodwill for impairment to determine if additional impairment testing is necessary. The Company’s 2014 and 2013 annual indefinite-lived intangible assets impairment analyses did not result in any impairment charges. | |
Treasury Stock | Treasury Stock |
Treasury stock is accounted for under the cost method and is included as a deduction from equity in the Stockholders’ Equity section of the Consolidated Balance Sheets. Upon any subsequent resale, the treasury stock account is reduced by the cost of such stock. | |
Revenue Recognition | Revenue Recognition |
Investment management fees, distribution and service fees and administration and transfer agent fees are recorded as revenues during the period in which services are performed. Investment management fees are earned based upon a percentage of assets under management and are paid pursuant to the terms of the respective investment management contracts, which generally require monthly or quarterly payment. | |
The Company accounts for investment management fees in accordance with ASC 605, Revenue Recognition, and has recorded its management fees net of fees paid to unaffiliated advisers. The Company considers the nature of its contractual arrangements in determining whether to recognize revenue based on the gross amount billed or net amount retained. The Company has evaluated the factors in ASC 605-45 in determining whether to record revenue on a gross or net basis with significant weight placed on: (i) if the Company is the primary obligor in the arrangement; and (ii) if the Company has latitude in establishing price. Amounts paid to unaffiliated advisers for the years ended December 31, 2014, 2013 and 2012 were $124.4 million, $96.1 million and $53.7 million, respectively. | |
Distribution and service fees are earned based on a percentage of assets under management and are paid monthly pursuant to the terms of the respective distribution and service fee contracts. Underwriter fees are sales-based charges on sales of certain class A-share mutual funds. | |
Administration and transfer agent fees consist of fund administration fees, transfer agent fees and fiduciary fees. Fund administration and transfer agent fees are earned based on the average daily assets in the funds. | |
Other income and fees consist primarily of redemption income on the early redemption of certain share classes of mutual funds and distribution of nonaffiliated products. | |
Advertising and Promotion | Advertising and Promotion |
Advertising and promotional costs include print advertising and promotional items and are expensed as incurred. These costs are classified in other operating expense in the Consolidated Statements of Operations. | |
Stock-based Compensation | Stock-based Compensation |
The Company accounts for stock-based compensation expense in accordance with ASC 718, Compensation—Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense for share-based awards based on the estimated fair value on the date of grant. | |
Restricted stock units (“RSUs”) are stock awards that entitle the holder to receive shares of the Company’s common stock as the award vests over time or when certain performance targets are achieved. The fair value of each RSU award is estimated using the intrinsic value method, which is based on the fair market value price on the date of grant unless it contains a performance metric that is considered a market condition. RSUs that contain a market condition are valued using a simulation valuation model. Compensation expense for RSU awards is recognized ratably over the vesting period on a straight-line basis. | |
The fair value of each stock option award is estimated on the date of grant using the Black-Scholes stock option valuation model. The Black-Scholes stock option valuation model incorporates assumptions as to dividend yield, volatility, an appropriate risk-free interest rate and the expected life of the stock option. | |
Income Taxes | Income Taxes |
The Company accounts for income taxes in accordance with ASC 740, Income Taxes, which requires recognition of the amount of taxes payable or refundable for the current year, as well as deferred tax liabilities and assets for the future tax consequences of events that have been included in the Company’s financial statements or tax returns. Deferred tax liabilities and assets result from differences between the book value and tax basis of the Company’s assets, liabilities and carry-forwards, such as net operating losses or tax credits. | |
The Company’s methodology for determining the realizability of deferred tax assets includes consideration of taxable income in prior carryback year(s) if carryback is permitted under the tax law, as well as consideration of the reversal of deferred tax liabilities that are in the same period and jurisdiction and are of the same character as the temporary differences that gave rise to the deferred tax assets. The Company’s methodology also includes estimates of future taxable income from its operations, as well as the expiration dates and amounts of carry-forwards related to net operating losses and capital losses. These estimates are projected through the life of the related deferred tax assets based on assumptions that the Company believes to be reasonable and consistent with demonstrated operating results. Changes in future operating results not currently forecasted may have a significant impact on the realization of deferred tax assets. Valuation allowances are provided when it is determined that it is more likely than not that the benefit of deferred tax assets will not be realized. | |
Comprehensive Income | Comprehensive Income |
The Company reports all changes in comprehensive income in the Consolidated Statements of Changes in Stockholders’ Equity and the Consolidated Statements of Comprehensive Income. Comprehensive income includes net income (loss), foreign currency translation adjustments (net of tax) and unrealized gains and losses on investments classified as available-for-sale (net of tax). | |
Earnings per Share | Earnings per Share |
Earnings per share (“EPS”) is calculated in accordance with ASC 260, Earnings per Share. Basic EPS excludes dilution for potential common stock issuances and is computed by dividing basic net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted EPS, the basic weighted average number of shares is increased by the dilutive effect of RSUs and stock options using the treasury stock method. | |
Fair Value Measurements and Fair Value of Financial Instruments | Fair Value Measurements and Fair Value of Financial Instruments |
The FASB defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and a valuation hierarchy based upon the transparency of inputs used in the valuation of an asset or liability. Classification within the hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation hierarchy contains three levels as follows: | |
Level 1—Quoted prices for identical instruments in active markets. Level 1 assets and liabilities may include debt securities and equity securities that are traded in an active exchange market. | |
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs may include observable market data such as closing market prices provided by independent pricing services after considering factors such as the yields or prices of comparable investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers and general market conditions. In addition, pricing services may determine the fair value of equity securities traded principally in foreign markets when it has been determined that there has been a significant trend in the U.S. equity markets or in index futures trading. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. | |
Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active exchange markets. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard modifies existing consolidation guidance for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2015, and requires either a retrospective or a modified retrospective approach to adoption. Early adoption is permitted. The company is currently evaluating the potential impact of this standard on its financial statements, as well as the available transition methods. | |
In August 2014, the FASB issued ASU No. 2014-13, Measuring the Financial Assets and Financial Liabilities of a Consolidated Collateralized Financing Entity (“CFE”) (“ASU 2014-13”). This new guidance requires reporting entities to use the more observable of the fair value of the financial assets or the financial liabilities to measure the financial assets and the financial liabilities of a CFE when a CFE is initially consolidated. It permits entities to make an accounting policy election to apply this same measurement approach after initial consolidation or to apply other GAAP to account for the consolidated CFE’s financial assets and financial liabilities. It also prohibits all entities from electing to use the fair value option in ASC 825, Financial Instruments, to measure either the financial assets or financial liabilities of a consolidated CFE that is within the scope of this issue. This guidance is effective for fiscal years beginning after December 15, 2015, and interim periods therein. Early adoption is permitted using a modified retrospective transition approach as described in the pronouncement. As of December 31, 2014, the Company has not yet adopted ASU 2014-13 but does not expect this standard to have a material effect on its financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). ASU 2014-09 provides a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or a modified retrospective approach. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2016. Early adoption is prohibited. The Company is currently evaluating the impact ASU 2014-09 is expected to have on its consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists. ASU 2013-11 became effective for the Company on January 1, 2014. The Company adopted this standard as of January 1, 2014. The adoption of this standard did not have a material impact on the Company’s financial results. | |
In June 2013, the FASB issued ASU No. 2013-08, Investment Companies: Amendments to the Scope, Measurement and Disclosure Requirements. The new standard clarifies the characteristics of an investment company and provides comprehensive guidance for assessing whether an entity is an investment company. The amendments apply to an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. The Company adopted this standard as of January 1, 2014. The adoption of this standard did not have a material impact on the Company’s financial results. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Summary of Intangible Assets, Net | Intangible assets, net are summarized as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
($ in thousands) | |||||||||||||
Definite-lived intangible assets, net: | |||||||||||||
Investment contracts | $ | 158,747 | $ | 157,882 | |||||||||
Accumulated amortization | (149,380 | ) | (145,665 | ) | |||||||||
Definite-lived intangible assets, net | 9,367 | 12,217 | |||||||||||
Indefinite-lived intangible assets | 32,416 | 32,416 | |||||||||||
Total intangible assets, net | $ | 41,783 | $ | 44,633 | |||||||||
Schedule of Activity in Goodwill and Intangible Assets, Net | Activity in goodwill and intangible assets, net is as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands) | |||||||||||||
Intangible assets, net | |||||||||||||
Balance, beginning of period | $ | 44,633 | $ | 48,711 | $ | 52,096 | |||||||
Acquisition | 1,075 | 356 | 560 | ||||||||||
Amortization expense | (3,925 | ) | (4,434 | ) | (3,945 | ) | |||||||
Balance, end of period | $ | 41,783 | $ | 44,633 | $ | 48,711 | |||||||
Goodwill | |||||||||||||
Balance, beginning of period | $ | 5,260 | $ | 5,260 | $ | 4,795 | |||||||
Acquisition | — | — | 465 | ||||||||||
Balance, end of period | $ | 5,260 | $ | 5,260 | $ | 5,260 | |||||||
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments Schedule [Abstract] | |||||||||||||||||
Summary of Investments | The Company’s investments, excluding the assets of consolidated sponsored investment products, discussed in Note 19, are as follows: | ||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Marketable securities | $ | 50,251 | $ | 28,968 | |||||||||||||
Equity method investments | 7,209 | 4,070 | |||||||||||||||
Nonqualified retirement plan assets | 5,063 | 4,220 | |||||||||||||||
Other investments | 925 | — | |||||||||||||||
Total investments | $ | 63,448 | $ | 37,258 | |||||||||||||
Schedule of Marketable Securities | The Company’s marketable securities consist of both trading (including securities held by a broker-dealer affiliate) and available-for-sale securities. The composition of the Company’s marketable securities is summarized as follows: | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Loss | Gain | Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Trading: | |||||||||||||||||
Sponsored funds | $ | 39,079 | $ | (1,190 | ) | $ | 423 | $ | 38,312 | ||||||||
Equity securities | 8,421 | — | 319 | 8,740 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sponsored closed-end funds | 3,129 | (163 | ) | 233 | 3,199 | ||||||||||||
Total marketable securities | $ | 50,629 | $ | (1,353 | ) | $ | 975 | $ | 50,251 | ||||||||
December 31, 2013 | |||||||||||||||||
Cost | Unrealized | Unrealized | Fair | ||||||||||||||
Loss | Gain | Value | |||||||||||||||
($ in thousands) | |||||||||||||||||
Trading: | |||||||||||||||||
Sponsored funds | $ | 16,079 | $ | (704 | ) | $ | 2,529 | $ | 17,904 | ||||||||
Equity securities | 7,043 | — | 1,336 | 8,379 | |||||||||||||
Available-for-sale: | |||||||||||||||||
Sponsored closed-end funds | 2,815 | (145 | ) | 15 | 2,685 | ||||||||||||
Total marketable securities | $ | 25,937 | $ | (849 | ) | $ | 3,880 | $ | 28,968 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis | The Company’s assets and liabilities measured at fair value, excluding the assets and liabilities of consolidated sponsored investment products discussed in Note 19, on a recurring basis as of December 31, 2014 and December 31, 2013 by fair value hierarchy level were as follows: | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 202,054 | $ | — | $ | — | $ | 202,054 | |||||||||
Marketable securities trading: | |||||||||||||||||
Sponsored funds | 38,312 | — | — | 38,312 | |||||||||||||
Equity securities | 8,740 | — | — | 8,740 | |||||||||||||
Marketable securities available for sale: | |||||||||||||||||
Sponsored closed-end funds | 3,199 | — | — | 3,199 | |||||||||||||
Other investments | |||||||||||||||||
Nonqualified retirement plan assets | 5,063 | — | — | 5,063 | |||||||||||||
Total assets measured at fair value | $ | 257,368 | $ | — | $ | — | $ | 257,368 | |||||||||
December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 270,262 | $ | — | $ | — | $ | 270,262 | |||||||||
Marketable securities trading: | |||||||||||||||||
Sponsored funds | 17,904 | — | — | 17,904 | |||||||||||||
Equity securities | 8,379 | — | — | 8,379 | |||||||||||||
Marketable securities available for sale: | |||||||||||||||||
Sponsored closed-end funds | 2,685 | — | — | 2,685 | |||||||||||||
Other investments | |||||||||||||||||
Nonqualified retirement plan assets | 4,220 | — | — | 4,220 | |||||||||||||
Total assets measured at fair value | $ | 303,450 | $ | — | $ | — | $ | 303,450 | |||||||||
Furniture_Equipment_and_Leaseh1
Furniture, Equipment and Leasehold Improvements, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Furniture, Equipment and Leasehold Improvements, Net | Furniture, equipment and leasehold improvements, net are summarized as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
($ in thousands) | |||||||||
Furniture and office equipment | $ | 4,762 | $ | 4,033 | |||||
Computer equipment and software | 6,148 | 5,663 | |||||||
Leasehold improvements | 8,454 | 7,240 | |||||||
19,364 | 16,936 | ||||||||
Accumulated depreciation and amortization | (12,171 | ) | (9,717 | ) | |||||
Furniture, equipment and leasehold improvements, net | $ | 7,193 | $ | 7,219 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Components of Provision for Income Taxes | The components of the provision for income taxes are as follows: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Current | |||||||||||||||||||||||||
Federal | $ | 31,787 | $ | 10,395 | $ | — | |||||||||||||||||||
State | 3,168 | 1,787 | 341 | ||||||||||||||||||||||
Total current tax expense | 34,955 | 12,182 | 341 | ||||||||||||||||||||||
Deferred | |||||||||||||||||||||||||
Federal | 3,200 | 29,933 | 19,707 | ||||||||||||||||||||||
State | 1,194 | 2,663 | 6,982 | ||||||||||||||||||||||
Total deferred tax expense (benefit) | 4,394 | 32,596 | 26,689 | ||||||||||||||||||||||
Total expense for income taxes | $ | 39,349 | $ | 44,778 | $ | 27,030 | |||||||||||||||||||
Reconciliation of Provision (Benefit) for Income Taxes | The following presents a reconciliation of the provision (benefit) for income taxes computed at the federal statutory rate to the provision (benefit) for income taxes recognized in the Consolidated Statements of Operations for the years indicated: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Tax at statutory rate | $ | 47,922 | 35 | % | $ | 41,968 | 35 | % | $ | 22,645 | 35 | % | |||||||||||||
State taxes, net of federal benefit | 4,357 | 3 | 2,893 | 2 | 4,793 | 7 | |||||||||||||||||||
Uncertain tax positions | (30,961 | ) | (22 | ) | — | — | — | — | |||||||||||||||||
IRS audit resolution | 15,505 | 11 | — | — | — | — | |||||||||||||||||||
Change in valuation allowance | 2,165 | 2 | (264 | ) | — | (242 | ) | — | |||||||||||||||||
Other, net | 361 | — | 181 | — | (166 | ) | — | ||||||||||||||||||
Income tax expense | $ | 39,349 | 29 | % | $ | 44,778 | 37 | % | $ | 27,030 | 42 | % | |||||||||||||
Summary of Tax Effects of Temporary Differences | The tax effects of temporary differences are as follows: | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Intangible assets | $ | 36,340 | $ | 43,827 | |||||||||||||||||||||
Net operating losses | 21,547 | 23,705 | |||||||||||||||||||||||
Compensation accruals | 6,757 | 6,280 | |||||||||||||||||||||||
Investments | 8,717 | 5,111 | |||||||||||||||||||||||
Unrealized loss/(gain) | 2,362 | (2,357 | ) | ||||||||||||||||||||||
Other | 46 | 1,581 | |||||||||||||||||||||||
Gross deferred tax assets | 75,769 | 78,147 | |||||||||||||||||||||||
Valuation allowance | (2,397 | ) | (35 | ) | |||||||||||||||||||||
Gross deferred tax assets after valuation allowance | 73,372 | 78,112 | |||||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Intangible assets | (12,718 | ) | (13,078 | ) | |||||||||||||||||||||
Other investments | (492 | ) | (534 | ) | |||||||||||||||||||||
Gross deferred tax liabilities | (13,210 | ) | (13,612 | ) | |||||||||||||||||||||
Deferred tax assets, net | $ | 60,162 | $ | 64,500 | |||||||||||||||||||||
Summary of Activity in Unrecognized Tax Benefits | Activity in unrecognized tax benefits is as follows: | ||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
($ in thousands) | |||||||||||||||||||||||||
Balance, beginning of year | $ | 32,602 | $ | 33,948 | $ | 34,139 | |||||||||||||||||||
Decrease related to tax positions taken in prior years | (32,602 | ) | (1,346 | ) | (191 | ) | |||||||||||||||||||
Increase related to positions taken in the current year | — | — | — | ||||||||||||||||||||||
Balance, end of year | $ | — | $ | 32,602 | $ | 33,948 | |||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity [Abstract] | |||||||||
Changes in Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive income by, component, are as follows: | ||||||||
Unrealized Gains | Foreign | ||||||||
and (Losses) | Currency | ||||||||
on Securities | Translation | ||||||||
Available-for- | Adjustments | ||||||||
Sale | |||||||||
($ in thousands) | |||||||||
Balance December 31, 2013 | $ | (231 | ) | $ | 81 | ||||
Unrealized net gains on investments, net of tax of ($76) | 124 | — | |||||||
Foreign currency translation adjustments, net of tax of $132 | — | (216 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income | — | — | |||||||
Net current-period other comprehensive income | 124 | (216 | ) | ||||||
Balance December 31, 2014 | $ | (107 | ) | $ | (135 | ) | |||
Unrealized Gains | Foreign | ||||||||
and (Losses) | Currency | ||||||||
on Securities | Translation | ||||||||
Available-for- | Adjustments | ||||||||
Sale | |||||||||
($ in thousands) | |||||||||
Balance December 31, 2012 | $ | (287 | ) | $ | — | ||||
Unrealized net gains on investments, net of tax of $223 | 56 | — | |||||||
Foreign currency translation adjustments, net of tax of ($50) | — | 81 | |||||||
Amounts reclassified from accumulated other comprehensive income | — | — | |||||||
Net current-period other comprehensive income | 56 | 81 | |||||||
Balance December 31, 2013 | $ | (231 | ) | $ | 81 | ||||
Capital_and_Reserve_Requiremen1
Capital and Reserve Requirement Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Summary of Aggregate Indebtedness, Net Capital and Resultant Ratio for VPD | Aggregate indebtedness, net capital, and the resultant ratio for VPD were as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands) | |||||||||||||
Aggregate indebtedness | $ | 23,511 | $ | 28,020 | $ | 23,443 | |||||||
Net capital | 21,919 | 22,086 | 16,617 | ||||||||||
Ratio of aggregate indebtedness to net capital | 1.1 to 1 | 1.3 to 1 | 1.4 to 1 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Summary of Stock-Based Compensation Expense | Stock-based compensation expense is summarized as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands) | |||||||||||||
Stock-based compensation expense | $ | 9,778 | $ | 7,960 | $ | 6,927 | |||||||
Summary of Restricted Stock Units Activity | RSU activity for the year ended December 31, 2014 is summarized as follows: | ||||||||||||
Number | Weighted | ||||||||||||
of shares | Average | ||||||||||||
Grant Date | |||||||||||||
Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 233,763 | $ | 87.97 | ||||||||||
Granted | 77,947 | $ | 183.83 | ||||||||||
Forfeited | (13,860 | ) | $ | 139.61 | |||||||||
Settled | (117,914 | ) | $ | 60.91 | |||||||||
Outstanding at December 31, 2014 | 179,936 | $ | 143.25 | ||||||||||
Summary of Stock Option Activity | Stock option activity for the year ended December 31, 2014 is summarized as follows: | ||||||||||||
Number | Weighted | ||||||||||||
of shares | Average | ||||||||||||
Exercise Price | |||||||||||||
Outstanding at December 31, 2013 | 190,160 | $ | 20.11 | ||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (27,336 | ) | $ | 27.97 | |||||||||
Forfeited | — | $ | — | ||||||||||
Outstanding at December 31, 2014 | 162,824 | $ | 18.79 | ||||||||||
Vested and exercisable at December 31, 2014 | 162,824 | $ | 18.79 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands, except per share amounts) | |||||||||||||
Net Income | $ | 96,965 | $ | 77,130 | $ | 37,773 | |||||||
Noncontrolling interests | 735 | (1,940 | ) | (101 | ) | ||||||||
Allocation of earnings to preferred stockholders | — | — | (64 | ) | |||||||||
Net Income Attributable to Common Stockholders | $ | 97,700 | $ | 75,190 | $ | 37,608 | |||||||
Shares: | |||||||||||||
Basic: Weighted-average number of shares outstanding | 9,091 | 8,188 | 7,727 | ||||||||||
Plus: Incremental shares from assumed conversion of dilutive instruments | 201 | 245 | 346 | ||||||||||
Diluted: Weighted-average number of shares outstanding | 9,292 | 8,433 | 8,073 | ||||||||||
Earnings per share—basic | $ | 10.75 | $ | 9.18 | $ | 4.87 | |||||||
Earnings per share—diluted | $ | 10.51 | $ | 8.92 | $ | 4.66 |
Concentration_of_Credit_Risk_T
Concentration of Credit Risk (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||
Summary of Funds Provided Ten Percent or More of Total Revenues | The concentration of credit risk with respect to advisory fees receivable is generally limited due to the short payment terms extended to clients by the Company. The following funds provided 10 percent or more of the total revenues of the Company: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
($ in thousands) | |||||||||||||
Virtus Premium AlphaSector™ Fund | |||||||||||||
Investment management, administration and transfer agent fees | $ | 61,566 | $ | 41,921 | $ | 27,987 | |||||||
Percent of total revenues | 14 | % | 11 | % | 12 | % | |||||||
Virtus Multi-Sector Short Term Bond Fund | |||||||||||||
Investment management, administration and transfer agent fees | $ | 55,401 | $ | 52,568 | $ | 39,475 | |||||||
Percent of total revenues | 12 | % | 14 | % | 17 | % | |||||||
Virtus Emerging Markets Opportunities Fund | |||||||||||||
Investment management, administration and transfer agent fees | $ | 50,435 | $ | 53,202 | $ | 29,818 | |||||||
Percent of total revenues | 11 | % | 14 | % | 12 | % |
Consolidated_Sponsored_Investm1
Consolidated Sponsored Investment Products (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Balances of Consolidated Sponsored Investment Products | The following table presents the balances of the consolidated sponsored investment products that were reflected in the Consolidated Balance Sheets as of December 31, 2014 and 2013: | ||||||||||||||||
As of December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 8,687 | $ | 531 | |||||||||||||
Total investments | 236,652 | 139,054 | |||||||||||||||
All other assets | 6,960 | 9,595 | |||||||||||||||
Total liabilities | (12,556 | ) | (8,435 | ) | |||||||||||||
Redeemable noncontrolling interest | (23,071 | ) | (42,186 | ) | |||||||||||||
The Company’s net interests in consolidated sponsored investment products | $ | 216,672 | $ | 98,559 | |||||||||||||
Consolidated Balance Sheets | The following tables reflect the impact of the consolidated sponsored investment products in the Consolidated Balance Sheets as of December 31, 2014 and 2013, respectively: | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Balance Sheet | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 202,847 | $ | 8,687 | $ | — | $ | 211,534 | |||||||||
Total investments | 279,863 | 236,652 | (216,415 | ) | 300,100 | ||||||||||||
All other assets | 180,436 | 6,960 | (257 | ) | 187,139 | ||||||||||||
Total assets | $ | 663,146 | $ | 252,299 | $ | (216,672 | ) | $ | 698,773 | ||||||||
Total liabilities | $ | 99,794 | $ | 12,813 | $ | (257 | ) | $ | 112,350 | ||||||||
Redeemable noncontrolling interest | — | — | 23,071 | 23,071 | |||||||||||||
Equity attributable to stockholders of the Company | 563,542 | 239,486 | (239,486 | ) | 563,542 | ||||||||||||
Non-redeemable noncontrolling interest | (190 | ) | — | — | (190 | ) | |||||||||||
Total liabilities and equity | $ | 663,146 | $ | 252,299 | $ | (216,672 | ) | $ | 698,773 | ||||||||
As of December 31, 2013 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Balance Sheet | ||||||||||||||||
($ in thousands) | |||||||||||||||||
Total cash | $ | 271,014 | $ | 531 | $ | — | $ | 271,545 | |||||||||
Total investments | 135,692 | 139,054 | (98,434 | ) | 176,312 | ||||||||||||
All other assets | 187,627 | 9,595 | (125 | ) | 197,097 | ||||||||||||
Total assets | $ | 594,333 | $ | 149,180 | $ | (98,559 | ) | $ | 644,954 | ||||||||
Total liabilities | $ | 101,465 | $ | 8,560 | $ | (125 | ) | $ | 109,900 | ||||||||
Redeemable noncontrolling interest | — | — | 42,186 | 42,186 | |||||||||||||
Equity attributable to stockholders of the Company | 492,930 | 140,620 | (140,620 | ) | 492,930 | ||||||||||||
Non-redeemable noncontrolling interest | (62 | ) | — | — | (62 | ) | |||||||||||
Total liabilities and equity | $ | 594,333 | $ | 149,180 | $ | (98,559 | ) | $ | 644,954 | ||||||||
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and equity and recording of any noncontrolling interest. | ||||||||||||||||
Consolidated Statement of Operations | The following table reflects the impact of the consolidated sponsored investment products in the Consolidated Statement of Operations for the years ended December 31 2014, 2013 and 2012, respectively: | ||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Statement of | ||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 451,259 | $ | — | $ | (661 | ) | $ | 450,598 | ||||||||
Total operating expenses | 316,840 | 3,699 | (661 | ) | 319,878 | ||||||||||||
Operating income (loss) | 134,419 | (3,699 | ) | — | 130,720 | ||||||||||||
Total other non-operating income (expense) | 2,502 | 2,619 | 473 | 5,594 | |||||||||||||
Income (loss) before income tax expense | 136,921 | (1,080 | ) | 473 | 136,314 | ||||||||||||
Income tax expense | 39,349 | — | — | 39,349 | |||||||||||||
Net income (loss) | 97,572 | (1,080 | ) | 473 | 96,965 | ||||||||||||
Noncontrolling interests | 128 | — | 607 | 735 | |||||||||||||
Net income (loss) attributable to the Company | $ | 97,700 | $ | (1,080 | ) | $ | 1,080 | $ | 97,700 | ||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Statement of | ||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 389,202 | $ | — | $ | 13 | $ | 389,215 | |||||||||
Total operating expenses | 274,913 | 785 | 13 | 275,711 | |||||||||||||
Operating income (loss) | 114,289 | (785 | ) | — | 113,504 | ||||||||||||
Total other non-operating income (expense) | 5,620 | 6,098 | (3,314 | ) | 8,404 | ||||||||||||
Income (loss) before income tax expense | 119,909 | 5,313 | (3,314 | ) | 121,908 | ||||||||||||
Income tax expense | 44,778 | — | — | 44,778 | |||||||||||||
Net income (loss) | 75,131 | 5,313 | (3,314 | ) | 77,130 | ||||||||||||
Noncontrolling interests | 59 | — | (1,999 | ) | (1,940 | ) | |||||||||||
Net income (loss) attributable to the Company | $ | 75,190 | $ | 5,313 | $ | (5,313 | ) | $ | 75,190 | ||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||
Balance Before | Consolidated | Eliminations | Balances as | ||||||||||||||
Consolidation of | Sponsored | and | Reported in | ||||||||||||||
Investment Products | Investment | Adjustments (a) | Consolidated | ||||||||||||||
Products | Statement of | ||||||||||||||||
Operations | |||||||||||||||||
($ in thousands) | |||||||||||||||||
Total operating revenues | $ | 279,919 | $ | — | $ | 167 | $ | 280,086 | |||||||||
Total operating expenses | 219,326 | 148 | 167 | 219,641 | |||||||||||||
Operating income (loss) | 60,593 | (148 | ) | — | 60,445 | ||||||||||||
Total other non-operating income (expense) | 4,106 | 2,649 | (2,397 | ) | 4,358 | ||||||||||||
Income (loss) before income tax expense | 64,699 | 2,501 | (2,397 | ) | 64,803 | ||||||||||||
Income tax expense | 27,030 | — | — | 27,030 | |||||||||||||
Net income (loss) | 37,669 | 2,501 | (2,397 | ) | 37,773 | ||||||||||||
Noncontrolling interests | 3 | — | (104 | ) | (101 | ) | |||||||||||
Allocation of earnings to preferred stockholders | (64 | ) | — | — | (64 | ) | |||||||||||
Net income (loss) attributable to the Company | $ | 37,608 | $ | 2,501 | $ | (2,501 | ) | $ | 37,608 | ||||||||
(a) | Adjustments include the elimination of intercompany transactions between the Company and its consolidated sponsored investment products, primarily the elimination of the investments and equity and recording of any noncontrolling interest. | ||||||||||||||||
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The assets and liabilities of the consolidated sponsored investment products measured at fair value on a recurring by fair value hierarchy level were as follows: | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Debt securities | $ | — | $ | 135,050 | $ | 1,065 | $ | 136,115 | |||||||||
Equity securities | 82,417 | 18,120 | — | 100,537 | |||||||||||||
Derivatives | 154 | 227 | — | 381 | |||||||||||||
Total Assets Measured at Fair Value | $ | 82,571 | $ | 153,397 | $ | 1,065 | $ | 237,033 | |||||||||
Liabilities | |||||||||||||||||
Derivatives | $ | 191 | $ | — | $ | — | $ | 191 | |||||||||
Short sales | 7,491 | 674 | — | 8,165 | |||||||||||||
Total Liabilities Measured at Fair Value | $ | 7,682 | $ | 674 | $ | — | $ | 8,356 | |||||||||
As of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
($ in thousands) | |||||||||||||||||
Assets | |||||||||||||||||
Debt securities | $ | — | $ | 47,114 | $ | — | $ | 47,114 | |||||||||
Equity securities | 91,940 | — | — | 91,940 | |||||||||||||
Total Assets Measured at Fair Value | $ | 91,940 | $ | 47,114 | $ | — | $ | 139,054 | |||||||||
Consolidated Sponsored Investment Products [Member] | |||||||||||||||||
Reconciliation of Assets Related to Consolidated Sponsored Investment Products | The following table is a reconciliation of assets of consolidated sponsored investment products for Level 3 investments for which significant unobservable inputs were used to determine fair value. | ||||||||||||||||
Level 3 | |||||||||||||||||
Debt | |||||||||||||||||
securities (a) | |||||||||||||||||
Balance at December 31, 2013 | $ | — | |||||||||||||||
Purchases | 1,119 | ||||||||||||||||
Sales | — | ||||||||||||||||
Paydowns | (3 | ) | |||||||||||||||
Change in unrealized gain/loss | (51 | ) | |||||||||||||||
Balance at December 31, 2014 | $ | 1,065 | |||||||||||||||
(a) | None of the securities were internally fair valued at December 31, 2014. |
Selected_Quarterly_Data_Tables
Selected Quarterly Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of Selected Quarterly Data | |||||||||||||||||
2014 | |||||||||||||||||
($ in thousands, except share data) | Fourth | Third | Second | First | |||||||||||||
Quarter | Quarter (1) | Quarter | Quarter | ||||||||||||||
Revenues | $ | 112,137 | $ | 117,841 | $ | 112,749 | $ | 107,871 | |||||||||
Operating Income | 36,665 | 38,927 | 22,502 | 32,626 | |||||||||||||
Net Income Attributable to Common Stockholders | 18,879 | 37,340 | 19,543 | 21,938 | |||||||||||||
Earnings per share—Basic | $ | 2.09 | $ | 4.1 | $ | 2.14 | $ | 2.41 | |||||||||
Earnings per share—Diluted | $ | 2.05 | $ | 4.02 | $ | 2.1 | $ | 2.34 | |||||||||
2013 | |||||||||||||||||
Fourth | Third | Second | First | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues | $ | 106,498 | $ | 100,409 | $ | 96,140 | $ | 86,168 | |||||||||
Operating Income | 33,892 | 31,630 | 26,882 | 21,100 | |||||||||||||
Net Income Attributable to Common Stockholders | 24,756 | 21,089 | 15,385 | 13,960 | |||||||||||||
Earnings per share—Basic | $ | 2.72 | $ | 2.64 | $ | 1.97 | $ | 1.79 | |||||||||
Earnings per share—Diluted | $ | 2.65 | $ | 2.56 | $ | 1.91 | $ | 1.73 | |||||||||
-1 | The third quarter of 2014 includes a net tax benefit of approximately $15.5 million due to completion of the audit of the Company’s 2011 federal corporate income tax return. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Investment management fees | $1.60 | $1.70 | $2.50 |
Number of operating segment | 1 | ||
Management fees net of fees paid | $124.40 | $96.10 | $53.70 |
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred sales charges receiving period | 1 year | ||
Deferred commissions amortization period | 1 year | ||
Estimated useful lives of intangibles | 1 year | ||
Minimum [Member] | Furniture and Office Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of fixed assets | 3 years | ||
Minimum [Member] | Computer Equipment and Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of fixed assets | 3 years | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred sales charges receiving period | 5 years | ||
Deferred commissions amortization period | 5 years | ||
Estimated useful lives of intangibles | 16 years | ||
Maximum [Member] | Furniture and Office Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of fixed assets | 7 years | ||
Maximum [Member] | Computer Equipment and Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Useful lives of fixed assets | 5 years |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Summary of Intangible Assets, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Definite-lived intangible assets, net: | ||||
Investment contracts | $158,747 | $157,882 | ||
Accumulated amortization | -149,380 | -145,665 | ||
Definite-lived intangible assets, net | 9,367 | 12,217 | ||
Indefinite-lived intangible assets | 32,416 | 32,416 | ||
Total intangible assets, net | $41,783 | $44,633 | $48,711 | $52,096 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Schedule of Activity in Goodwill and Intangible Assets, Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible assets, net, beginning of period | $44,633 | $48,711 | $52,096 |
Acquisition | 1,075 | 356 | 560 |
Amortization expense | -3,925 | -4,434 | -3,945 |
Intangible assets, net, end of period | 41,783 | 44,633 | 48,711 |
Goodwill | 5,260 | 5,260 | 4,795 |
Acquisition | 0 | 465 | |
Goodwill | $5,260 | $5,260 | $5,260 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $3.30 |
2016 | 2.5 |
2017 | 0.8 |
2018 | 0.6 |
2019 | 0.5 |
Thereafter | $1.70 |
Weighted average estimated remaining amortization period | 4 years 9 months 18 days |
Investments_Summary_of_Investm
Investments - Summary of Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments Schedule [Abstract] | ||
Marketable securities | $50,251 | $28,968 |
Equity method investments | 7,209 | 4,070 |
Nonqualified retirement plan assets | 5,063 | 4,220 |
Other investments | 925 | |
Total investments | $63,448 | $37,258 |
Investments_Schedule_of_Market
Investments - Schedule of Marketable Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Marketable Securities [Abstract] | ||
Cost | $50,629 | $25,937 |
Unrealized Loss | -1,353 | -849 |
Unrealized Gain | 975 | 3,880 |
Fair Value | 50,251 | 28,968 |
Sponsored Funds [Member] | ||
Marketable Securities [Abstract] | ||
Cost | 39,079 | 16,079 |
Unrealized Loss | -1,190 | -704 |
Unrealized Gain | 423 | 2,529 |
Fair Value | 38,312 | 17,904 |
Equity Securities [Member] | ||
Marketable Securities [Abstract] | ||
Cost | 8,421 | 7,043 |
Unrealized Loss | 0 | |
Unrealized Gain | 319 | 1,336 |
Fair Value | 8,740 | 8,379 |
Sponsored Closed-End Funds [Member] | ||
Marketable Securities [Abstract] | ||
Cost | 3,129 | 2,815 |
Unrealized Loss | -163 | -145 |
Unrealized Gain | 233 | 15 |
Fair Value | $3,199 | $2,685 |
Investments_Additional_Informa
Investments - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2014 | Apr. 09, 2013 | Dec. 31, 2014 | Apr. 09, 2013 | Apr. 09, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Maximum [Member] | Kleinwort Benson Investors International, Ltd. [Member] | Kleinwort Benson Investors International, Ltd. [Member] | Kleinwort Benson Investors International, Ltd. [Member] | Kleinwort Benson Investors International, Ltd. [Member] | |
USD ($) | USD ($) | EUR (€) | |||||||
Investment [Line Items] | |||||||||
Realized gain on trading securities | $8,200,000 | $1,000,000 | $400,000 | ||||||
Interest acquired in limited partnership | 5,000,000 | ||||||||
Future capital commitment | 6,700,000 | ||||||||
Acquisition date | 9-Apr-13 | ||||||||
Percentage of noncontrolling equity interest acquired | 50.00% | 24.00% | 24.00% | ||||||
Noncontrolling equity interest acquired, amount | 3,400,000 | 2,600,000 | |||||||
Investment to goodwill | 5,260,000 | 5,260,000 | 5,260,000 | 4,795,000 | 2,500,000 | ||||
Definite-lived intangible assets | 600,000 | ||||||||
Period of amortization of definite-lived intangible assets | 7 years | ||||||||
Remaining assets and liabilities | $300,000 |
Fair_Value_Measurements_Change
Fair Value Measurements - Changes in Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cash equivalents | $202,054 | $270,262 |
Total assets measured at fair value | 257,368 | 303,450 |
Other investments, nonqualified retirement plan assets | 5,063 | 4,220 |
Sponsored Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 38,312 | 17,904 |
Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 8,740 | 8,379 |
Sponsored Closed-End Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities available for sale | 3,199 | 2,685 |
Nonqualified Retirement Plan Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments, nonqualified retirement plan assets | 5,063 | 4,220 |
Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cash equivalents | 202,054 | 270,262 |
Total assets measured at fair value | 257,368 | 303,450 |
Level 1 [Member] | Sponsored Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 38,312 | 17,904 |
Level 1 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 8,740 | 8,379 |
Level 1 [Member] | Sponsored Closed-End Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities available for sale | 3,199 | 2,685 |
Level 1 [Member] | Nonqualified Retirement Plan Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments, nonqualified retirement plan assets | 5,063 | 4,220 |
Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cash equivalents | 0 | |
Total assets measured at fair value | 0 | |
Level 2 [Member] | Sponsored Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 0 | |
Level 2 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 0 | |
Level 2 [Member] | Sponsored Closed-End Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities available for sale | 0 | |
Level 2 [Member] | Nonqualified Retirement Plan Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments, nonqualified retirement plan assets | 0 | |
Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cash equivalents | 0 | |
Total assets measured at fair value | 0 | |
Level 3 [Member] | Sponsored Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 0 | |
Level 3 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities trading | 0 | |
Level 3 [Member] | Sponsored Closed-End Funds [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Marketable securities available for sale | 0 | |
Level 3 [Member] | Nonqualified Retirement Plan Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments, nonqualified retirement plan assets | $0 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | |||
Fair value, equity, Level 1 to Level 2 transfers, amount | $0 | $0 | $0 |
Furniture_Equipment_and_Leaseh2
Furniture, Equipment and Leasehold Improvements, Net - Furniture, Equipment and Leasehold Improvements, Net (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Furniture and office equipment | $4,762 | $4,033 |
Computer equipment and software | 6,148 | 5,663 |
Leasehold improvements | 8,454 | 7,240 |
Furniture, equipment and leasehold improvements, gross | 19,364 | 16,936 |
Accumulated depreciation and amortization | -12,171 | -9,717 |
Furniture, equipment and leasehold improvements, net | $7,193 | $7,219 |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Federal | $31,787 | $10,395 | |
State | 3,168 | 1,787 | 341 |
Total current tax expense | 34,955 | 12,182 | 341 |
Deferred | |||
Federal | 3,200 | 29,933 | 19,707 |
State | 1,194 | 2,663 | 6,982 |
Total deferred tax expense (benefit) | 4,394 | 32,596 | 26,689 |
Income tax expense | $39,349 | $44,778 | $27,030 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 3.00% | 2.00% | 7.00% |
Uncertain tax positions | -22.00% | ||
IRS audit resolution | 11.00% | ||
Change in valuation allowance | 2.00% | ||
Other, net | 0.00% | ||
Income tax expense | 29.00% | 37.00% | 42.00% |
Tax at statutory rate | $47,922 | $41,968 | $22,645 |
State taxes, net of federal benefit | 4,357 | 2,893 | 4,793 |
Uncertain tax positions | -30,961 | ||
IRS audit resolution | 15,505 | ||
Change in valuation allowance | 2,165 | -264 | -242 |
Other, net | 361 | 181 | -166 |
Income tax expense | $39,349 | $44,778 | $27,030 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Reconciliation [Line Items] | |||
Estimated effective income tax rate | 29.00% | 37.00% | 42.00% |
Effective tax rate impacted by net tax benefit | $15,505,000 | ||
Recognized tax benefit from uncertain tax positions | 31,000,000 | ||
Reduction on deferred tax assets | 15,500,000 | ||
Valuation allowance | -2,397,000 | -35,000 | -1,600,000 |
Deferred tax assets related to net operating losses for federal income tax purposes | 21,547,000 | 23,705,000 | |
Ownership percentage | 50.00% | ||
Percentage increasing ownership | 5.00% | ||
Pre-tax net operating loss carryovers | 66,500,000 | ||
Built-in losses annual limitation | 4,200,000 | ||
Reduced unrecognized tax benefits | 32,602,000 | 1,346,000 | 191,000 |
Net of federal benefit | 31,000,000 | ||
Interest or penalties related to uncertain tax positions | 0 | 0 | 0 |
Recognized tax benefits | 39,349,000 | 44,778,000 | 27,030,000 |
Connecticut [Member] | |||
Income Tax Reconciliation [Line Items] | |||
Open tax year | 2001 | ||
New York [Member] | |||
Income Tax Reconciliation [Line Items] | |||
Open tax year | 2000 | ||
Tax Year 2011 [Member] | |||
Income Tax Reconciliation [Line Items] | |||
Decrease in net operating loss carry-forwards | 15,500,000 | ||
Domestic Tax Authority [Member] | |||
Income Tax Reconciliation [Line Items] | |||
Deferred tax assets related to net operating losses for federal income tax purposes | 41,000,000 | ||
Domestic Tax Authority [Member] | Minimum [Member] | |||
Income Tax Reconciliation [Line Items] | |||
Operating loss carry-forwards, expiration beginning year | 2029 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Reconciliation [Line Items] | |||
Deferred tax assets related to net operating losses for federal income tax purposes | 7,200,000 | ||
State and Local Jurisdiction [Member] | Minimum [Member] | |||
Income Tax Reconciliation [Line Items] | |||
Operating loss carry-forwards, expiration beginning year | 2016 | ||
Stock-based Incentive Plans [Member] | |||
Income Tax Reconciliation [Line Items] | |||
Recognized tax benefits | $24,800,000 |
Income_Taxes_Summary_of_Tax_Ef
Income Taxes - Summary of Tax Effects of Temporary Differences (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Deferred tax assets: | |||
Intangible assets | $36,340 | $43,827 | |
Net operating losses | 21,547 | 23,705 | |
Compensation accruals | 6,757 | 6,280 | |
Investments | 8,717 | 5,111 | |
Unrealized loss/(gain) | 2,362 | -2,357 | |
Other | 46 | 1,581 | |
Gross deferred tax assets | 75,769 | 78,147 | |
Valuation allowance | -2,397 | -35 | -1,600 |
Gross deferred tax assets after valuation allowance | 73,372 | 78,112 | |
Deferred tax liabilities: | |||
Intangible assets | -12,718 | -13,078 | |
Other investments | -492 | -534 | |
Gross deferred tax liabilities | -13,210 | -13,612 | |
Deferred tax assets, net | $60,162 | $64,500 |
Income_Taxes_Summary_of_Activi
Income Taxes - Summary of Activity in Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance, beginning of year | $32,602 | $33,948 | $34,139 |
Decrease related to tax positions taken in prior years | -32,602 | -1,346 | -191 |
Increase related to positions taken in the current year | 0 | ||
Balance, end of year | $32,602 | $33,948 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | |||
Term for credit facility | 5 years | ||
Outstanding under the Credit Facility | $0 | $0 | |
Letter of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Limit for the issuance of standby letters of credit | 7,500,000 | ||
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Borrowing capacity | 75,000,000 | ||
Credit facility amount increase in borrowing capacity on condition | 50,000,000 | ||
Repayment of debt | 15,000,000 | ||
Remaining borrowing capacity | $75,000,000 | ||
Credit facility interest periods | One, two, three or six months | ||
Minimum interest coverage ratio | At least 4.00:1 | ||
Minimum percentage of interest adjustment | 4 | ||
Leverage ratio | No greater than 2.75:1 | ||
Maximum indebtedness to EBITDA | 2.75 | ||
Revolving Credit Facility [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Percentage of margin on principal amount | 2.50% | ||
Commitment fee | 0.50% | ||
Revolving Credit Facility [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Percentage of margin on principal amount | 0.75% | ||
Commitment fee | 0.35% |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Rental expenses | $3.70 | $3.40 | $3.30 |
Minimum aggregate rental payments required under operating lease, 2015 | 3.7 | ||
2016 | 3.7 | ||
2017 | 3.6 | ||
2018 | 3.4 | ||
2019 | 2.1 | ||
Thereafter | $4 |
Equity_Transactions_Additional
Equity Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 49 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Sep. 30, 2013 | Dec. 10, 2014 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Treasury stock, shares acquired | 225,441 | 105,000 | 575,441 | |||||
Weighted average purchase price per share | $178.54 | $187.61 | $134.98 | |||||
Total cost of treasury shares acquired | $40,300,000 | $19,700,000 | $77,700,000 | |||||
Repurchased additional shares of common stock, shares | 500,000 | |||||||
Common stock remaining authorized for repurchase | 624,559 | 624,559 | 624,559 | |||||
Total cash dividends | 12,451,000 | 0 | ||||||
Cash dividends declared per share | $0.45 | $0.45 | $0.45 | $1.35 | ||||
Dividend, record date | 30-Jan-15 | |||||||
Dividend, to be paid date | 13-Feb-15 | |||||||
Dividends payable | 4,270,000 | 4,270,000 | 4,270,000 | |||||
Common stock value | 191,578,000 | |||||||
Public Offering [Member] | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Common stock, shares issued | 1,300,000 | |||||||
Common stock value | $191,800,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | ($150) | ||
Other comprehensive income (loss) before reclassifications, net of tax | 124 | 56 | -273 |
Other comprehensive income (loss) before reclassifications, foreign currency translation adjustments, net of tax | -216 | 81 | |
Other comprehensive (loss) income | -92 | 137 | -273 |
Ending Balance | -242 | -150 | |
Unrealized Gains and (Losses) on Securities Available-for-Sale [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | -231 | -287 | |
Other comprehensive income (loss) before reclassifications, net of tax | 124 | 56 | |
Other comprehensive income (loss) before reclassifications, foreign currency translation adjustments, net of tax | 0 | ||
Amounts reclassified from accumulated other comprehensive income | 0 | ||
Other comprehensive (loss) income | 124 | 56 | |
Ending Balance | -107 | -231 | |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning Balance | 81 | ||
Other comprehensive income (loss) before reclassifications, net of tax | 0 | ||
Other comprehensive income (loss) before reclassifications, foreign currency translation adjustments, net of tax | -216 | 81 | |
Amounts reclassified from accumulated other comprehensive income | 0 | ||
Other comprehensive (loss) income | -216 | 81 | |
Ending Balance | ($135) | $81 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, tax | ($76) | $223 | $81 |
Other comprehensive income (loss) before reclassifications, tax | 132 | -50 | |
Unrealized Gains and (Losses) on Securities Available-for-Sale [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, tax | -76 | ||
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) before reclassifications, tax | $132 |
Capital_and_Reserve_Requiremen2
Capital and Reserve Requirement Information - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Brokers and Dealers [Abstract] | ||
Aggregate indebtedness to net capital | 15 | |
Minimum net capital requirement based on aggregate indebtedness | $1.60 | $1.90 |
Capital_and_Reserve_Requiremen3
Capital and Reserve Requirement Information - Summary of Aggregate Indebtedness, Net Capital and Resultant Ratio for VPD (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Brokers and Dealers [Abstract] | |||
Aggregate indebtedness | $23,511 | $28,020 | $23,443 |
Net capital | $21,919 | $22,086 | $16,617 |
Ratio of aggregate indebtedness to net capital | 1.1 | 1.3 | 1.4 |
Restructuring_and_Severance_Ad
Restructuring and Severance - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and severance charges | $294,000 | $203,000 | $1,597,000 |
Maximum [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Unpaid severance and related charges | 100,000 | ||
Reduction [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and severance charges | $300,000 | $200,000 | $1,600,000 |
BMO_Related_Party_Transactions1
BMO Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | |||
Accounts payable, related parties | $0 | ||
Distribution and administration expenses | 100,000 | 500,000 | 2,100,000 |
Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Accounts payable, related parties | $100,000 |
Retirement_Savings_Plan_Additi
Retirement Savings Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Employees' contributions at a rate | 3.00% | ||
Matching Contribution Percentage | 50.00% | ||
Employees' contributions at a rate | 2.00% | ||
Matching Contribution Amount | $2.80 | $2.50 | $2 |
Matching Contribution Percentage | 100.00% |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of common stock reserved for issuance | 1,800,000 | ||
Shares of common stock available for issuance | 427,781 | ||
Vesting period of stock options in years | 3 years | ||
Grant-date intrinsic value of RSU | $14,300,000 | ||
Weighted average remaining contractual life | 1 year 1 month 6 days | ||
Weighted-average grant-date fair value | $183.83 | $188.36 | $81.47 |
The total grant-date fair value of options vested | 21,100,000 | 17,900,000 | 30,700,000 |
Cash used for employee withholding tax payments | 9,100,000 | 7,500,000 | 11,500,000 |
Share settlement under RSUs | 50,952 | 38,222 | 143,102 |
Compensation expense recognition period | 3 years | ||
The weighted-average remaining contractual term for stock options outstanding | 3 years 10 months 24 days | 4 years 9 months 18 days | |
The weighted-average remaining contractual term for stock options vested and exercisable | 3 years 10 months 24 days | ||
Aggregate intrinsic value of stock options outstanding | 24,700,000 | ||
Aggregate intrinsic value of stock options vested and exercisable | 24,700,000 | ||
The total grant-date fair value of stock options vested | 400,000 | 200,000 | 1,200,000 |
The total intrinsic value of stock options exercised | 4,200,000 | 5,100,000 | 9,200,000 |
Cash received from stock option exercises | 753,000 | 570,000 | 2,636,000 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unamortized stock-based compensation expense | 12,600,000 | 8,900,000 | |
Weighted average remaining amortization periods | 1 year 1 month 6 days | 1 year | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual life in years | 10 years | ||
Unamortized stock-based compensation expense | 100,000 | ||
Weighted average remaining amortization periods | 2 months 12 days | ||
Number of unvested stock options | 0 | ||
RSU and Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Company granted performance contingent RSU | 27,782 | ||
Stock-based compensation expense | 1,400,000 | ||
Unamortized stock-based compensation expense | $3,500,000 | ||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual life in years | 1 year | ||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual life in years | 3 years |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation expense | $9,778 | $7,960 | $6,927 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Restricted Stock Units Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value, Granted | $183.83 | $188.36 | $81.47 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Beginning Balance | 233,763 | ||
Number of shares, Granted | 77,947 | ||
Number of shares, Forfeited | -13,860 | ||
Number of shares, Settled | -117,914 | ||
Number of shares, Ending Balance | 179,936 | ||
Weighted Average Grant Date Fair Value, Beginning Balance | $87.97 | ||
Weighted Average Grant Date Fair Value, Granted | $183.83 | ||
Weighted Average Grant Date Fair Value, Forfeited | $139.61 | ||
Weighted Average Grant Date Fair Value, Settled | $60.91 | ||
Weighted Average Grant Date Fair Value, Ending Balance | $143.25 |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of shares, Beginning Balance | 190,160 |
Number of shares, Granted | 0 |
Number of shares, Exercised | -27,336 |
Number of shares, Forfeited | 0 |
Number of shares, Ending Balance | 162,824 |
Vested and exercisable at December 31, 2014 | 162,824 |
Weighted Average Exercise Price, Beginning Balance | $20.11 |
Weighted Average Exercise Price, Granted | $0 |
Weighted Average Exercise Price, Exercised | $27.97 |
Weighted Average Exercise Price, Forfeited | $0 |
Weighted Average Exercise Price, Ending Balance | $18.79 |
Vested and exercisable at December 31, 2014 | $18.79 |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net Income | $96,965 | $77,130 | $37,773 | ||||||||
Noncontrolling interests | 735 | -1,940 | -101 | ||||||||
Allocation of earnings to preferred stockholders | 0 | -64 | |||||||||
Net Income Attributable to Common Stockholders | $18,879 | $37,340 | $19,543 | $21,938 | $24,756 | $21,089 | $15,385 | $13,960 | $97,700 | $75,190 | $37,608 |
Shares: | |||||||||||
Basic: Weighted-average number of shares outstanding | 9,091 | 8,188 | 7,727 | ||||||||
Plus: Incremental shares from assumed conversion of dilutive instruments | 201 | 245 | 346 | ||||||||
Diluted: Weighted-average number of shares outstanding | 9,292 | 8,433 | 8,073 | ||||||||
Earnings per share-Basic | $2.09 | $4.10 | $2.14 | $2.41 | $2.72 | $2.64 | $1.97 | $1.79 | $10.75 | $9.18 | $4.87 |
Earnings per share-Diluted | $2.05 | $4.02 | $2.10 | $2.34 | $2.65 | $2.56 | $1.91 | $1.73 | $10.51 | $8.92 | $4.66 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Number of anti-dilutive instruments excluded from computation of weighted-average shares for diluted earnings per share | 6,085 | 0 | 0 |
Concentration_of_Credit_Risk_A
Concentration of Credit Risk - Additional Information (Detail) (Total Revenue [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Total Revenue [Member] | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 10.00% |
Concentration_of_Credit_Risk_S
Concentration of Credit Risk - Summary of Funds Provided Ten Percent or More of Total Revenues (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Virtus Premium AlphaSector Fund [Member] | |||
Concentration Risk [Line Items] | |||
Investment management, administration and transfer agent fees | $61,566 | $41,921 | $27,987 |
Virtus Multi-Sector Short Term Bond Fund [Member] | |||
Concentration Risk [Line Items] | |||
Investment management, administration and transfer agent fees | 55,401 | 52,568 | 39,475 |
Virtus Emerging Markets Opportunities Fund [Member] | |||
Concentration Risk [Line Items] | |||
Investment management, administration and transfer agent fees | $50,435 | $53,202 | $29,818 |
Sales Revenue, Services, Net [Member] | Virtus Premium AlphaSector Fund [Member] | |||
Concentration Risk [Line Items] | |||
Percent of total revenues | 14.00% | 11.00% | 12.00% |
Sales Revenue, Services, Net [Member] | Virtus Multi-Sector Short Term Bond Fund [Member] | |||
Concentration Risk [Line Items] | |||
Percent of total revenues | 12.00% | 14.00% | 17.00% |
Sales Revenue, Services, Net [Member] | Virtus Emerging Markets Opportunities Fund [Member] | |||
Concentration Risk [Line Items] | |||
Percent of total revenues | 11.00% | 14.00% | 12.00% |
Consolidated_Sponsored_Investm2
Consolidated Sponsored Investment Products - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Product | Product | ||
Condensed Financial Statements, Captions [Line Items] | |||
Number of consolidated sponsored investment products | 12 | 8 | |
Number of additional consolidated sponsored investment products | 6 | ||
Number of deconsolidated sponsored investment products | 2 | ||
Fair value, securities, Level 1 to Level 2 transfers, amount | $0 | $0 | $0 |
Percentage of permitted borrowings | 33.33% | ||
Securities [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Fair value, securities, Level 1 to Level 2 transfers, amount | $1,500,000 |
Consolidated_Sponsored_Investm3
Consolidated Sponsored Investment Products - Balances of Consolidated Sponsored Investment Products (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Total cash | $8,687 | $531 |
Total investments | 236,652 | 139,054 |
All other assets | 6,960 | 9,595 |
Total liabilities | -12,556 | -8,435 |
Redeemable noncontrolling interest | -23,071 | -42,186 |
Company's net interests in consolidated sponsored investment products | $216,672 | $98,559 |
Consolidated_Sponsored_Investm4
Consolidated Sponsored Investment Products - Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | $202,847 | $271,014 |
Total investments | 63,448 | 37,258 |
All other assets | 16,060 | 15,724 |
Total assets | 698,773 | 644,954 |
Total liabilities | 112,350 | 109,900 |
Redeemable noncontrolling interest | 23,071 | 42,186 |
Equity attributable to stockholders of the Company | 563,542 | 492,930 |
Non-redeemable noncontrolling interest | -190 | -62 |
Total liabilities and equity | 698,773 | 644,954 |
Balances as Reported in Consolidated Balance Sheet [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | 211,534 | 271,545 |
Total investments | 300,100 | 176,312 |
All other assets | 187,139 | 197,097 |
Total assets | 698,773 | 644,954 |
Total liabilities | 112,350 | 109,900 |
Redeemable noncontrolling interest | 23,071 | 42,186 |
Equity attributable to stockholders of the Company | 563,542 | 492,930 |
Non-redeemable noncontrolling interest | -190 | -62 |
Total liabilities and equity | 698,773 | 644,954 |
Reportable Legal Entities [Member] | Balance Before Consolidation of Investment Products [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | 202,847 | 271,014 |
Total investments | 279,863 | 135,692 |
All other assets | 180,436 | 187,627 |
Total assets | 663,146 | 594,333 |
Total liabilities | 99,794 | 101,465 |
Redeemable noncontrolling interest | 0 | |
Equity attributable to stockholders of the Company | 563,542 | 492,930 |
Non-redeemable noncontrolling interest | -190 | -62 |
Total liabilities and equity | 663,146 | 594,333 |
Reportable Legal Entities [Member] | Consolidated Sponsored Investment Products [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | 8,687 | 531 |
Total investments | 236,652 | 139,054 |
All other assets | 6,960 | 9,595 |
Total assets | 252,299 | 149,180 |
Total liabilities | 12,813 | 8,560 |
Redeemable noncontrolling interest | 0 | |
Equity attributable to stockholders of the Company | 239,486 | 140,620 |
Non-redeemable noncontrolling interest | 0 | |
Total liabilities and equity | 252,299 | 149,180 |
Eliminations and Adjustments [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Total cash | 0 | |
Total investments | -216,415 | -98,434 |
All other assets | -257 | -125 |
Total assets | -216,672 | -98,559 |
Total liabilities | -257 | -125 |
Redeemable noncontrolling interest | 23,071 | 42,186 |
Equity attributable to stockholders of the Company | -239,486 | -140,620 |
Non-redeemable noncontrolling interest | 0 | |
Total liabilities and equity | ($216,672) | ($98,559) |
Consolidated_Sponsored_Investm5
Consolidated Sponsored Investment Products - Consolidated Statement of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total operating revenues | $112,137 | $117,841 | $112,749 | $107,871 | $106,498 | $100,409 | $96,140 | $86,168 | $450,598 | $389,215 | $280,086 |
Total operating expenses | 319,878 | 275,711 | 219,641 | ||||||||
Operating income (loss) | 36,665 | 38,927 | 22,502 | 32,626 | 33,892 | 31,630 | 26,882 | 21,100 | 130,720 | 113,504 | 60,445 |
Total other non-operating income (expense) | 5,594 | 8,404 | 4,358 | ||||||||
Income Before Income Taxes | 136,314 | 121,908 | 64,803 | ||||||||
Income tax expense | 39,349 | 44,778 | 27,030 | ||||||||
Net income (loss) | 96,965 | 77,130 | 37,773 | ||||||||
Noncontrolling interests | 735 | -1,940 | -101 | ||||||||
Allocation of earnings to preferred stockholders | 0 | -64 | |||||||||
Net income (loss) attributable to the Company | 18,879 | 37,340 | 19,543 | 21,938 | 24,756 | 21,089 | 15,385 | 13,960 | 97,700 | 75,190 | 37,608 |
Reportable Legal Entities [Member] | Balance Before Consolidation of Investment Products [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total operating revenues | 451,259 | 389,202 | 279,919 | ||||||||
Total operating expenses | 316,840 | 274,913 | 219,326 | ||||||||
Operating income (loss) | 134,419 | 114,289 | 60,593 | ||||||||
Total other non-operating income (expense) | 2,502 | 5,620 | 4,106 | ||||||||
Income Before Income Taxes | 136,921 | 119,909 | 64,699 | ||||||||
Income tax expense | 39,349 | 44,778 | 27,030 | ||||||||
Net income (loss) | 97,572 | 75,131 | 37,669 | ||||||||
Noncontrolling interests | 128 | 59 | 3 | ||||||||
Allocation of earnings to preferred stockholders | -64 | ||||||||||
Net income (loss) attributable to the Company | 97,700 | 75,190 | 37,608 | ||||||||
Reportable Legal Entities [Member] | Consolidated Sponsored Investment Products [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total operating revenues | 0 | ||||||||||
Total operating expenses | 3,699 | 785 | 148 | ||||||||
Operating income (loss) | -3,699 | -785 | -148 | ||||||||
Total other non-operating income (expense) | 2,619 | 6,098 | 2,649 | ||||||||
Income Before Income Taxes | -1,080 | 5,313 | 2,501 | ||||||||
Income tax expense | 0 | ||||||||||
Net income (loss) | -1,080 | 5,313 | 2,501 | ||||||||
Noncontrolling interests | 0 | ||||||||||
Net income (loss) attributable to the Company | -1,080 | 5,313 | 2,501 | ||||||||
Eliminations and Adjustments [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total operating revenues | -661 | 13 | 167 | ||||||||
Total operating expenses | -661 | 13 | 167 | ||||||||
Operating income (loss) | 0 | ||||||||||
Total other non-operating income (expense) | 473 | -3,314 | -2,397 | ||||||||
Income Before Income Taxes | 473 | -3,314 | -2,397 | ||||||||
Income tax expense | 0 | ||||||||||
Net income (loss) | 473 | -3,314 | -2,397 | ||||||||
Noncontrolling interests | 607 | -1,999 | -104 | ||||||||
Net income (loss) attributable to the Company | $1,080 | ($5,313) | ($2,501) |
Consolidated_Sponsored_Investm6
Consolidated Sponsored Investment Products - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | $236,652 | $139,054 |
Liabilities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 8,356 | |
Liabilities [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 191 | |
Liabilities [Member] | Short Sales [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 8,165 | |
Level 1 [Member] | Liabilities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 7,682 | |
Level 1 [Member] | Liabilities [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 191 | |
Level 1 [Member] | Liabilities [Member] | Short Sales [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 7,491 | |
Level 2 [Member] | Liabilities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 674 | |
Level 2 [Member] | Liabilities [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Level 2 [Member] | Liabilities [Member] | Short Sales [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 674 | |
Level 3 [Member] | Liabilities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Level 3 [Member] | Liabilities [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Level 3 [Member] | Liabilities [Member] | Short Sales [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 237,033 | 139,054 |
Assets [Member] | Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 136,115 | 47,114 |
Assets [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 100,537 | 91,940 |
Assets [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 381 | |
Assets [Member] | Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 82,571 | 91,940 |
Assets [Member] | Level 1 [Member] | Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Assets [Member] | Level 1 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 82,417 | 91,940 |
Assets [Member] | Level 1 [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 154 | |
Assets [Member] | Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 153,397 | 47,114 |
Assets [Member] | Level 2 [Member] | Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 135,050 | 47,114 |
Assets [Member] | Level 2 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 18,120 | |
Assets [Member] | Level 2 [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 227 | |
Assets [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 1,065 | |
Assets [Member] | Level 3 [Member] | Debt Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 1,065 | |
Assets [Member] | Level 3 [Member] | Equity Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | 0 | |
Assets [Member] | Level 3 [Member] | Derivatives Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Investments of Consolidated Sponsored Investment Products at Fair Value | $0 |
Consolidated_Sponsored_Investm7
Consolidated Sponsored Investment Products - Reconciliation of Assets Related to Consolidated Sponsored Investment Products (Detail) (Debt Securities [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Debt Securities [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $0 |
Purchases | 1,119 |
Sales | 0 |
Paydowns | -3 |
Change in unrealized gain/loss | -51 |
Ending balance | $1,065 |
Subsequent_Event_Additional_In
Subsequent Event - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Feb. 18, 2015 | |
Subsequent Event [Line Items] | |||||
Cash dividends declared per share | $0.45 | $0.45 | $0.45 | $1.35 | |
Dividend, record date | 30-Jan-15 | ||||
Dividend, to be paid date | 13-Feb-15 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash dividends declared per share | $0.45 | ||||
Dividend, record date | 30-Apr-15 | ||||
Dividend, to be paid date | 13-May-15 |
Selected_Quarterly_Data_Summar
Selected Quarterly Data - Summary of Selected Quarterly Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $112,137 | $117,841 | $112,749 | $107,871 | $106,498 | $100,409 | $96,140 | $86,168 | $450,598 | $389,215 | $280,086 |
Operating Income | 36,665 | 38,927 | 22,502 | 32,626 | 33,892 | 31,630 | 26,882 | 21,100 | 130,720 | 113,504 | 60,445 |
Net Income Attributable to Common Stockholders | $18,879 | $37,340 | $19,543 | $21,938 | $24,756 | $21,089 | $15,385 | $13,960 | $97,700 | $75,190 | $37,608 |
Earnings per share-Basic | $2.09 | $4.10 | $2.14 | $2.41 | $2.72 | $2.64 | $1.97 | $1.79 | $10.75 | $9.18 | $4.87 |
Earnings per share-Diluted | $2.05 | $4.02 | $2.10 | $2.34 | $2.65 | $2.56 | $1.91 | $1.73 | $10.51 | $8.92 | $4.66 |
Selected_Quarterly_Data_Summar1
Selected Quarterly Data - Summary of Selected Quarterly Data (Parenthetical) (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Quarterly Financial Information Disclosure [Abstract] | |
Net tax benefit of federal corporate income tax return | $15.50 |